§ 55. Mr. R. Gibsonasked the Chancellor of the Exchequer how much is the loss to the Treasury when a sum of £2,000,000 is expended on educational or charitable objects by equal instalments over a period of seven years by a person liable to pay Income Tax at the present rate and Super-tax at the maximum rate?
§ The Financial Secretary to the Treasury (Lieut.-Colonel Colville)I presume the hon. Member has in mind an annual payment which, having regard to the provisions of Section 20 of the Finance Act, 1922, would be allowable as a deduction in computing an individual's total income for Income Tax purposes. The highest rate of Income Tax and Sur-tax combined is 13s. 3d. in the £ and there is a loss of Tax at that rate in so far as any annual 30 payment to a charity is a deduction for Income Tax purposes from income chargeable at that rate, which, on the figures contained in the hon. Member's question, would amount to £1,325,000.
§ Mr. GibsonDoes that mean that in such a gift a sum of something like £1,325,000 comes out of public funds, whereas only something like £675,000 instead of £2,000,000 comes out of the pockets of the alleged benefactor, say, to the University of Oxford?
§ Lieut.-Colonel ColvilleI rather resent the suggestion in "alleged benefactor." When the benefaction is given, if only a portion of it comes from the man's retainable income, it must be regarded as such, but the hon. and learned Member can draw his own conclusions from the answer I have given.
§ Mr. MacquistenWill the Financial Secretary refuse to accept any suggestion from the other side that will discourage education or charity?