§ 47. Sir P. Hannonasked the Chancellor of the Exchequer whether he has had under consideration the position of beneficiaries of legacies, alimony and other payments which are being made free of Income Tax; whether he is aware that many of these settlements were arranged when Income Tax stood at 4s. 6d. or 5s. in the and consequently such beneficiaries are placed in a privileged position in relation to the ordinary taxpayer; and whether he contemplates any change of financial policy so that such beneficiaries should contribute their fair share of the cost of the war?
§ Sir K. WoodWhile, in the class of case to which my hon. Friend refers, an increase in the standard rate of Income Tax may have results not contemplated by the testator or settler, the Revenue is not in general affected. Income Tax is paid to the Revenue on the gross amount which, after deduction of tax at the standard rate for the time being, produces 27 the actual amount received by the beneficiary, and the gross amount constitutes the recipient's income from the particular source for purposes of Income Tax (including Surtax).
§ Mr. LoftusWill my right hon. Friend also consider the fact that recently many directors of public companies have increased their remuneration considerably?