HC Deb 15 March 1923 vol 161 cc1770-1
42. Mr. LEES-SMITH

asked the Chancellor of the Exchequer what, on the average, is approximately the proportion of the income payable out of the public revenue to princes of Royal blood which is allowed to be deducted in accordance with Rule 10 of the rules applicable to Schedule E, of 8 and 9 Geo. V, c. 40, before arriving at the net amount for the purposes of Income Tax and Super-tax?

Mr. BALDWIN

Of the provision made by 10 Edw. VII and I Geo. V, c. 28, 80 per cent. falls within the rules quoted by the hon. Member from 8 and 9 Geo. V, c. 40.

Mr. LEES-SMITH

May I ask the right hon. Gentleman whether that reply does not mean, in non-technical language, that the Royal Princes pay Income Tax and Super-tax on only a third of their income from public revenues, and that four-fifths of their income is free from taxation?

Mr. BALDWIN

I think that is quite obvious from my reply.

Mr. LEES-SMITH

Does the right hon. Gentleman realise that that means that as the income of the Royal Princes increases the allowance increases in proportion, so that if the income increases from £10,000 to £25,000, only £5,000 will be paid in Income Tax, as in the case of the Duke of York?

Mr. BALDWIN

I do not think that necessarily follows, and I would remind the hon. Gentleman that this is precisely the same Statute under which we here enjoy a remission of taxation.