PAYMENTS IN RESPECT OF WAR INJURIES TO EMPLOYE'S. (Hansard, 23 April 1941)

§ Mr. Benson
May we have a little more explanation of this rather obscure Resolution?

§ Captain Crookshank
Certainly. I am at the disposal of the House, and when it is necessary to speak I am willing to do so. This Resolution carries out the proposal which was adumbrated by my right hon. Friend in this House on 18th December, when he made his statement 210 about the improved Personal Injuries (Civilians) Scheme. The point is that, having made the arrangement—which we are not discussing now—on the personal injuries scheme, the Government came to the conclusion that it was very important that there should not be permissible an allowance for Income Tax purposes on payments which might be made by employers in schemes, whether directly by way of premiums or contributions in regard to war injuries. Where the Excess Profits Tax of 100 per cent, works, if that form of compensation for war damage were to be a permissible charge, it would in fact mean that to a large extent it would be financed by the State, the State having come to the conclusion that the personal injuries scheme should be dealt with by way of State grants. The House will agree that there should be no allowances made if, in spite of the announcement of last December, such schemes have been introduced, or are continuing. It is in order to get over that difficulty that this Resolution has been introduced.

§ Mr. Hammersley
Am I right in understanding that there is no intention of applying this Resolution to ordinary contributory pensions schemes which are now in existence in so many businesses?

§ Capt. Crookshank
This deals with war injuries. It says in the Resolution: No deduction shall be made for payments to or in respect of employés who sustain war injuries or for premiums or contributions under policies, agreements, schemes or arrangements providing for such payments. It is dealing with the war position.