HC Deb 03 June 1918 vol 106 cc1300-1

(1) In addition to the Income Tax charged at the rate of six shillings under this Act and the additional Income Tax under Section twenty- seven of the Finance Act, 1916, there shall be charged, levied, and paid for the year beginning on the sixth day of April, nineteen hundred and eighteen, in respect of the income of any individual, the total of which from all sources exceeds two thousand five hundred pounds, an additional duty of Income Tax (in this Act referred to as "Super-tax") at the following rates:

In respect of the first £2,000 of the income Nil.
In respect of the excess over £2,000—
for every pound of the first £500 of the excess one shilling.
for every pound of the next £500 of the excess one shilling and sixpence.
for every pound of the next £1,000 of the excess two shillings.
for every pound of the next £1,000 of the excess two shillings and sixpence.
for every pound of the next £1,000 of the excess three shillings.
for every pound of the next £2,000 of the excess three shillings and sixpence.

(2) All such enactments relating to Super-tax as were in force with respect to the Super-tax granted for the year beginning the sixth day of April, nineteen hundred and seventeen, shall have full force and effect with respect to the Super-tax granted under this Section.

Motion made, and Question proposed, "That the Clause stand part of the Bill."

Mr. RAWLINSON

The words of this Clause are In respect of the income of any individual the total of which from all sources exceed £2,500. That, for all practical purposes, has always been dealt with in the sensible way of taking the income which the person literally receives during the. previous year. But as regards such questions as the continuance of War Loan, or anything of that kind, they have to be thrown forward into the next year, and the Exchequer loses a large part of the income for a long time. That also has a bad effect upon people themselves. I would like the right hon. Gentleman to consider whether there is not any way in which he can deal with total incomes from all sources. People would return the literal amount of money which they had received from one 5th of April to the next 5th of April. That would be the business-like way of doing it. If it cannot be done in the case of Income Tax—and I never could discover why it could not be done in that way—at all events it could be done in reference to Super-tax. The present procedure reduces the old idea, which began with a three years' average, to a wholesale absurdity. It is not in any spirit of hostility to the Income Tax or the Super-tax that I make this criticism, but in view of the fact that under the present system there is a tremendous loss to the Exchequer. I have never received any satisfactory answer to the question why both Super-tax and Income Tax should not be taxed in the simple way on the exact amount which has been received during the preceding twelve months. Question put, and agreed to.