HC Deb 11 April 1922 vol 153 cc222-3
58. Sir W. DAVISON

asked the Chancellor of the Exchequer whether he has now given further consideration to the serious injustice suffered by children of deceased officers by reason of the fact that the allowances granted to them by Royal Warrants have been included with the income of their mothers, thereby rendering the said allowances subject to Income Tax; and whether, seeing that it is specifically provided in the Royal Warrant of 1914 that the allowance is an allowance to the children and not to the mother, and that in subsequent warrants the allowances were paid to the children through the mothers only for the administrative convenience of the Government, and not with the object of providing an additional income for the widow or revenue for the Exchequer, he will remove this anomaly?

Mr. YOUNG

As regards the first part of the question, I would refer my hon. Friend to the reply which was given to him by my right hon. Friend the Chancellor of the Exchequer on the 21st March. The Commissioners of Inland Revenue are advised that when re-assessed under the Royal Warrants of 1917 and 1920, allowances in respect of children of deceased officers, originally granted under the Royal Warrant of 1914, fall for Income Tax purposes into the same category as allowances granted under the later Warrants, as being allowances by way of increased pension to the mothers. No distinction falls to be made, therefore, between the two classes of case.

Sir W. DAVISON

Is the hon. Gentleman not aware that, even in the Royal Warrant of 1st July, 1920, it is provided that if, in the opinion of the Ministry of Pensions, it becomes necessary to secure the proper care of a child on behalf of whom the allowance is payable, the allowance, instead of being paid to the widow, may be administered under such conditions as the Ministry may determine? Is it not clear from this that, if the allowance is payable to the widow, it is on behalf of the child?

Mr. YOUNG

My memory does not hold the particular circumstances to which my hon. Friend refers. I take it from him that it is so. But, even so, I do not think that the legal consequences can be drawn from that Clause which my hon. Friend suggests.