HC Deb 11 June 1940 vol 361 cc1134-5
56. Mr. Marcus Samuel

asked the Chancellor of the Exchequer whether, in order to encourage savings, he will consider the advisability of excluding all such sums of earned income as may be invested in war savings from the operation of Income Tax up to the amount of £500 per head?

Sir K. Wood

I am afraid that I could not entertain this suggestion. I may remind my hon. Friend that the earned income allowance exempts from Income Tax one-sixth of the earned income, up to a maximum allowance of £250.

57. Mr. Parker

asked the Financial Secretary to the Treasury whether arrangements will be made to allow depositors, who so wish during the war, to deposit their savings in the Post Office Savings Bank free of interest charge?

The Financial Secretary to the Treasury (Captain Crookshank)

Depositors in the Post Office Savings Bank who wish to surrender the interest on their deposits to the Exchequer for the duration of the war need only notify their wishes to the Controller of the Bank, who will make the necessary arrangements to give effect to them. I should like to take this opportunity of saying how much I appreciate the patriotism of the considerable number of depositors who have already done so.

Sir Irving Albery

Is there any limit to the amount which can be deposited in this way?

Captain Crookshank

There is, under the present regulations, an annual limit upon what may be put into the Post Office Savings Bank.

Sir I. Albery

Would it not be desirable to remove that limit in the case of deposits carried over?

Captain Crookshank

That is another question. If my hon. Friend will put it down, I will give it consideration, and answer it.