HC Deb 19 March 1928 vol 215 cc17-8
57. Sir W. DAVISON

asked the Chancellor of the Exchequer whether he is aware of the considerable out-of-pocket expenses incurred by Territorial officers in the discharge of their official duties; and whether he will make arrangements so that such expenses are deducted by these officers from their Income Tax returns in the same way as expenses in connection with the running of a business can be deducted?

The FINANCIAL SECRETARY to the TREASURY (Mr. Arthur Michael Samuel)

I regret that I am unable to adopt my hon. Friend's suggestion. His proposal runs directly counter to an important principle of our Income Tax code which applies to all classes of taxpayers, including the trading community, and under which deductions for Income Tax purposes are confined to such expenditure as is necessarily incurred in earning the profits or income in respect of which the tax is charged.

Sir W. DAVISON

Having regard to the very patriotic service of these officers and to the fact that, this expenditure was incurred in discharge of their public duties does the Financial Secretary not think that the Inland Revenue might well consider whether some concession could not be made?

Mr. SAMUEL

The position is entirely governed by the principles laid down in the Income Tax Acts code, and I am not in a position to give a favourable reply to my hon. Friend's question.

Sir W. DAVISON

While the hon. Gentleman may not be able to give a favourable answer to this question, having regard to the law as it stands today, will he consider whether the law should not be altered in the direction suggested in the question?

Mr. E. BROWN

Would the hon. Gentleman be prepared to write a patriotic poem on this theme?

Brigadier - General Sir HENRY CROFT

Does the hon. Member realise that this is a very serious question, seeing that the pay and allowances of these officers are very small, and could not some concession like the one suggested be made?

Mr. CAMPBELL

Are not these men giving voluntary service to the country?

Mr. SAMUEL

I will most certainly give the matter careful consideration, and see that the views of my hon. and gallant Friend are laid before the Chancellor of the Exchequer.

Lieut.-Commander KENWORTHY

When this matter is being considered will the fact be borne in mind that when these Regulations were first drawn up the Income Tax was very much lower than it is now and the pay of these officers has been increased by very little?