HC Deb 22 February 1921 vol 138 cc755-6

asked the Chancellor of the Exchequer whether naval officers and men stationed in India and China, who have received some compensation in exchange owing to the price of silver being exceptionally high last year, are now called upon to pay Income Tax on the compensations so received in addition to Income Tax charged in the usual way upon their ordinary pay; whether such extra Income Tax has been made retrospective as from 1st April, 1920; and whether, as this affects only a small number of people of strictly limited means who have in many cases, owing to the high cost of living on their respective stations, spent all their income, and have no means of meeting the retrospective surcharge now levied upon them, he can see his way to remit it, in view of the fact that it is very burdensome to the officers and men affected, that it has taken them entirely by surprise, and that it produces very little to the Exchequer?

The CHANCELLOR of the EXCHEQUER (Mr. Chamberlain)

Amounts received on account of exchange compensation are liable to Income Tax equally with any other form of war bonus, and the tax thereon is being collected in the usual course for the current year of assessment ending on the 5th April next. The tax chargeable under the provisions of the Income Tax Acts, on payments of this character, is paid by all officers of the Crown, including the naval officers and men to whom my hon. Friend refers.