§ 70. Mr. Frankel
asked the Financial Secretary to the Treasury under what regulation that part of the income of a person over 65 years of age which exceeds £500 a year is subject to a tax of 15s. in the £1 instead of 10s.?
§ Mr. Assheton
The provisions relating to relief from tax—generally known as age relief—in favour of persons of over 65 years of age with income less than £500 are to be found in Section 15 (2) of the Finance Act, 1925, as amended by Section 8 (2) of the Finance (No. 2) Act, 1940. This Section contains the marginal provision to which my hon. Friend's Question relates and which far from imposing an additional burden gives relief in cases where the income is just over £500 and where in consequence the taxpayer misses the full benefit of the age relief; but for this relief there would be a sudden jump in the liability where the income just exceeds £500.