§ 91. Lieutenant-Colonel Sir SAMUEL HOAREasked the Chancellor of the Exchequer whether he will give instructions that Income Tax be not charged in respect of wound pensions and disability pensions awarded to members of the Navy, Army, and Air Force.
§ Mr. BALDWINThe Chancellor of the Exchequer asks me to say that wound and disability pensions are chargeable with Income Tax under the law as it now stands, and that he has no power to remit the charge by executive action. He thinks, however, that it is contrary to public sentiment to tax these payment, which moreover appear to him to be payments in the nature of compensation for injury received and therefore analogous to awards under the Workmen's Compensation Act which are not taxable. He will therefore seek authority in the Finance Bill to exempt them from Income Tax as from the beginning of the now current financial year.
§ Sir NORTON GRIFFITHSIs it not possible to cease to collect this tax until the matter comes up before the House?
§ Mr. BALDWINI will consider that.
§ Viscount WOLMERCan the hon. Gentleman say whether those officers who have paid Income Tex on wounds received before the commencement of the current financial year will have that Income Tax refunded to them?
§ Mr. BALDWINI will consider that.