§ 58. Major Petoasked the Chancellor of the Exchequer whether, in view of the fact that earned income is taxed at a lower rate than unearned income, he will investigate the possibility of reducing the rate of tax at present charged on the pensions of men invalided from the Services 920 whose physical condition makes it impossible for them to engage in occupations which will bring them earned income of any kind?
§ Sir K. WoodWounds pensions and disability pensions granted on account of medical unfitness attributed to naval, military or Air Force service are not liable to tax. Other pensions which are granted in respect of past service are treated as earned income, and the appropriate deduction is allowed. I am afraid I cannot see my way to propose any further special relief.