HC Deb 17 November 1927 vol 210 cc1123-4

asked the Financial Secretary to the Treasury if he is aware that Army ranker pensioned officers have been served with demands to pay arrears of Income Tax on their service pensions which they have not received, their service pensions having been withdrawn when they were awarded permanent disability pensions; and whether the exemption of payment of taxes in respect of disability pensions extends to ex-Regular Army pensioners?


The exemption from Income Tax in respect of disability pensions, granted by Section 16 of the

STATEMENT showing the weight of artifical silk charged with Excise Duty in the six months ended 31st October, 1927, compared with the six months ended 31st December, 1925
Six months ended— Singles Yarn or Straw. Waste. Total.
Lbs. Lbs. Lbs.
31st October, 1927 20,872,000 652,000 21,524,000
31st December, 1925 13,783,000 311,000 14,094,000

Finance Act, 1919, applies only to that part of the award which is solely attributable to disablement or disability, and, therefore, does not extend to pre-War service retired pay or pension. Thus, an officer, whether promoted from the ranks or not, who is in receipt of such service pension and is granted retired pay in respect of disability, is entitled to exemption only in respect of so much of the total award as exceeds the service pension. This position is not affected by the fact that the service pension is not issued as such, and the total sum due to the officer is paid as a single award by one paying authority.


Does my hon. Friend understand that these pensioners have forfeited their ordinary pensions on receipt of disability pensions, and that now they are called upon to pay Income Tax after several years on their ordinary pensions which they do not receive?


No, Sir; my hon. and gallant Friend, if he will allow me to say so, has misconceived the position. If he will look at my answer, he will see that it covers his question and supplements it.

Forward to