HC Deb 13 February 1919 vol 112 cc266-7
48. Mr. G. LOCKER-LAMPSON

asked the Prime Minister whether the Government have come to any decision as to the payment of Income Tax on officers' war gratuities?

82. Major EDWARD WOOD

asked the Chancellor of the Exchequer whether he will extend to gratuities payable to officers of the Army and the Air Force under Article 497 of the Pay Warrant, and to any other similar gratuities payable to members of the Navy. Army, and Air Force, the exemption from Income Tax which already obtains as regards gratuities for wounds and gratuities granted on compulsory retirement before eligibility for pension?

86. Major Sir SAMUEL SCOTT

asked the Chancellor of the Exchequer whether he in aware that gratuities on demobilisation originally were authorised for officers of the Territorial Force on mobilisation in order to reimburse some portion of the loss necessarily sustained by them on being suddenly taken away from civil employment; and why, as these gratuities are granted as compensation for loss sustained owing to serving their country, officers are charged Income Tax by the Treasury?

138. Sir F. HALL

asked the Secretary to the Treasury if the Army gratuities to officers in connection with the present War are now, or have at any time, been assessed for Income Tax; if Income Tax is now to be paid on these amounts will he state when such arrangement will be made; if this is the present practice will the Government forthwith give instructions that it is to be altered in order that gratuities made to officers on discharge may be given free of Income Tax; and, if such alteration is to be made, will the Government refund the amount charged for Income Tax to such officers who have been debited with the same?

Mr. BALDWIN

My right hon. Friend has no power to take the course suggested without legislative sanction, but he will seek Parliamentary authority to give the relief in the Finance Bill. He will propose that the relief should be given in the case of the gratuities as from the outbreak of the present War.

Sir J. BUTCHER

Pending legislation, will any steps be taken to exact this Income Tax?

Mr. BALDWIN

I will convey the hon. and learned Gentleman's suggestion to the Chancellor of the Exchequer.

Sir F. HALL

In respect of the reply to Question 138, which I put on the Paper, may I ask whether in cases where Income Tax has already been deducted it will be reimbursed after the matter has been discussed on the Finance Bill?

Mr. BALDWIN

That will be done.