§ 38. Mr. TOM SMITHasked the Chancellor of the Exchequer if he can state the estimated loss to the revenue if pensions paid to widows of ex-service men were exempt from Income Tax?
§ 39. Mr. SMEDLEY CROOKEasked the Financial Secretary to the Treasury what the approximate cost to the Exchequer would be if the annuities granted to the holders of the Victoria Cross were not subject to Income Tax, as in the case of those in receipt of wound and disability pensions under the Finance Act, 1919?
§ 40. Sir A. M. SAMUELasked the Financial Secretary to the Treasury whether he is aware that the pension granted to non-commissioned officers and men who are holders of the Victoria Cross is subject to taxation as earned income and that the pension is limited to £50 per 1544 annum; and if he will state the approximate amount of the loss to the revenue were the Victoria Cross pension exempted from taxation as in the case of wound and disability pensions?
§ Mr. HORE-BELISHAI regret that the statistics collected regarding the Income Tax do not distinguish the categories of income mentioned in the questions.
§ Mr. SMITHIn view of the special circumstances of this class of case, will consideration be given to it before the Finance Bill leaves the House?
§ Mr. HORE-BELISHAI shall be only too glad to assist the hon. Gentleman, but the statistics do not distinguish these categories. If there is any particular information outside that area that he desires, I shall be only too glad to give it.
§ Mr. SMITHIn view of the fact that many of these pensioners are paying Income Tax for the first and second time, will any consideration be given to them before the Finance Bill leaves the House?
§ Mr. HORE-BELISHANo, I am afraid not. These pensions, of course, are paid in full without deduction of tax. If there is any tax payable, it is because the recipient comes within the Income Tax category.
§ Mr. T. WILLIAMSIs the hon. Gentleman not aware that widows with pensions of round about £130 a year are now called upon to pay upon the proportion in excess of £100, and does he not think that the case might very well be reconsidered?
§ Mr. CROOKEAs the amount of tax on the annuities of the Victoria Cross must be comparatively small, will the hon. Gentleman consider the possibility of easing the lot of these gallant ex-service men by having the annuities made tax free?
§ Mr. HORE-BELISHAIt is only when the recipients of these gratuities or pensions come above the Income Tax limit—in other words, when they have means above that limit—that they are liable to tax. Any poor person below that limit is not subject to tax.
§ Sir A. M. SAMUELIs the hon. Gentleman aware that the average taxpayer would welcome legislation to abolish what is nothing more than an act of petty meanness?