HC Deb 20 December 1938 vol 342 cc2667-8
46. Mr. Arthur Greenwood

asked the Chancellor of the Exchequer whether he is aware that assessments to Income Tax have recently been made by the inspector of taxes for the Regent district of London, since confirmed by the chief inspector at Somerset House, in respect of the disablement benefit paid from 1931 to the present time by a registered friendly society, the Dentists Provident Society, to its member, Mr. L. Forsyth, who was rendered totally incapable of following his occupation as the result of serious physical injuries sustained in an accident in 1931; whether such assessments have been made with his knowledge and authority; what were the grounds for taking this action; and whether the assessments in question are to be allowed to stand or to be withdrawn?

The Chancellor of the Exchequer (Sir John Simon)

The right hon. Gentleman will appreciate that I am unable to discuss the taxation liability of an individual taxpayer. I understand, however, that the assessments to which the right hon. Gentleman refers, which were made in the ordinary course by the responsible body of Commissioners under the provisions of the Income Tax Acts, are under appeal.

Mr. Greenwood

I should not have put this question down had it not raised a point of principle, and is the right hon. Gentleman aware that I have been given to understand since I put the question down that in 1930, which was a year before this case, there was a similar case in which the view was taken that there should be no taxation in respect of such moneys?

Sir J. Simon

I have said that this particular decision is not my decision at all, and also that it is a decision which is under appeal, and in that connection I dare say the earlier facts to which the right hon. Gentleman referred will be considered.

47. Mr. Lipson

asked the Chancellor of the Exchequer whether when he is framing the next Budget, he will bear in mind the desirability of removing the discouragement given to matrimony under existing Income Tax law?

Sir J. Simon

My hon. Friend must not expect me to anticipate my Budget Statement.

Mr. Lipson

Is it not a fact that a man and woman living separate lives receive a personal allowance of £135, or £270 in all, and that if they marry the allowance is reduced to £180, which is a loss of £90; and would it not be possible, without any loss to the revenue, to average this figure out at a personal allowance of about £105? Will the right hon. Gentleman bear that in mind when framing his Budget?

Sir J. Simon

Perhaps my hon. Friend will bear in mind that there are other inducements to matrimony than that.

Sir S. Reed

May I ask the Chancellor of the Exchequer whether the present system is not an inducement to living in sin?