HC Deb 17 March 1942 vol 378 c1330
60. Mr. Rostron Duckworth

asked the Chancellor of the Exchequer whether he will extend the privilege under which the whole of a war disability pension is exempted from Income Tax to men who recover damages for pensionable loss of limb or other disabilities resulting from accidents whilst on duty and, in whose cases, the full weekly income value of the damages so recovered is deducted by the Ministry of Pensions from the pension normally payable, whilst the income received by the men from damage is subject to Income Tax?

Sir K. Wood

I regret that I could not entertain a proposal to amend the Act so as to exempt from Income Tax the annual product of damages recovered in the circumstances in question. The method of reckoning such damages in the assessment of pension is at present under review.