HC Deb 26 June 1941 vol 372 cc1101-2
40. Sir John Mellor

asked the Chancellor of the Exchequer whether, in conformity with the Government's policy with regard to obligations to pay sums free of Income Tax, as expressed in the Finance Bill, as amended, he will take steps to amend Sub-section (3) of Section 1 of the House of Commons Members' Fund Act, 1939, so as to reduce the deductions therein prescribed by nine-twenty-ninths during any year of assessment, the standard rate of Income Tax for which is 10s. in the £.

Sir K. Wood

No, Sir. The deductions referred to are not analogous to tax-free payments; they are simply contributions which are not allowable as a deduction for Income Tax purposes to the contributors.

Sir J. Mellor

Seeing that hon. Members get no relief from Income Tax in respect of the amount deducted, and the trustees of the fund do not bear any of it, is not this indeed an example of the mischief under the present circumstances of tax- free payments, which have been so eloquently denounced by my right hon. Friend?

Sir K. Wood

No, Sir, I am afraid 1 cannot agree with my hon. Friend. There is no question of contributors undertaking to bear the Income Tax burden of the fund, for the fund is not liable to Income Tax in respect of contributions.