HC Deb 27 June 1918 vol 107 c1227
52. Colonel YATE

asked the Chancellor of the Exchequer whether it has been brought to his notice that retired officers who have been re-employed and have become entitled to a gratuity for their services are having this gratuity included for taxation purposes in their total income for the year in which it is received, and so in many cases are having their incomes raised on to a higher scale of taxation, so that they gain little, or may be actual losers, by the grant of the gratuity; and will he have this hardship inflicted on these officers removed?


A gratuity to which a person is entitled under his engagement as remuneration for services rendered is regarded as income for Income Tax purposes and is in effect a part of his salary. I might add that in no case could the recipient of such a gratuity be the loser, as suggested in the question.