§ 20. Sir B. FALLEasked the Parliamentary Secretary to the Admiralty what rates of Income Tax were charged on the income of naval officers for the financial year 1915–16?
§ Lieut.-Colonel HEADLAMThe incomes of naval officers for the financial year 1915–16 were charged with Income Tax at the same rates as those of taxpayers generally, except that incomes from naval sources below £160 a year were exempt and incomes from naval sources exceeding £160 and not exceeding £300 a year were charged at 9d. in the £ on the excess over £160 per annum.
§ Sir B. FALLEDoes that mean that the higher incomes were not considered earned?
§ Lieut.-Colonel HEADLAMI think the arrangement was rather better for the Navy than it was for ordinary persons.
§ Sir B. FALLEThat does not answer the question whether the salary is going to be considered earned or not earned.
§ Lieut.-Colonel HEADLAMI am afraid I do not understand my hon. Friend's question. The point was that the Income Tax deduction was rather more favourable to the Navy than to civilians and that all incomes are treated in the same way.