HC Deb 28 March 1944 vol 398 cc1244-5
47. Mr. Parker

asked the Chancellor of the Exchequer whether he will consider giving encouragement to old people, who have returned to industry to help with the war effort, by making post-war credit notes payable on demand at the Post Office to all persons on attaining their 70th birthday.

Sir J. Anderson

I would refer the hon. Member to the reply given by my predecessor on the 19th January, 1943, to my hon. Friend the Member for South Dorset (Viscount Hinchingbrooke).

56. Mr. Turton

asked the Chancellor of the Exchequer whether members of the Services who are serving abroad or who are prisoners of war are subject to a deduction from their post-war credit on this account.

Sir J. Anderson

No, Sir. The Income Tax post-war credit depends solely upon, and is measured by, the additional tax payable by reason of the cut in the personal allowances and reliefs made by the Finance Act, 1941. Where a member of the Forces, whether by reason of service abroad or by reason of being a prisoner of war, is for Income Tax purposes nonresident, his post-war credit is unaffected if his whole income is liable to tax, for he gets the whole of the personal allowances and reliefs. If, on the other hand, he has income from foreign sources which ceases to be liable to tax because he is non-resident, the law provides in effect that he should be given only a part of his personal allowances and reliefs, proportionate to the amount of his income liable to tax as compared with the total amount of his income, including income not liable to tax, and this involves a corresponding reduction of his post-war credit, as compared with the post-war Credit which would be allowed if his whole income were liable to tax.

Mr. Turton

Will my right hon. Friend see that all prisoners of war are told what is the position, because the impression is that they are not getting a square deal?

Sir J. Anderson

Yes, Sir; I can assure my hon. Friend that special attention will be given to that matter.

57. Captain Bullock

asked the Chancellor of the Exchequer if soldiers, sailors and airmen, serving abroad and prisoners of war are subject to a deduction in their post-war credits; and if they are treated as residents for purposes of taxation and non-residents for post-war credits.

Sir J. Anderson

As regards the first part of the Question, I would refer my hon. and gallant Friend to the answer which I have just given to my hon. Friend the member for Thirsk and Malton (Mr. Turton). As regards the second part, a person who is resident for tax purposes is treated as resident for all those purposes, including post-war credit, and similarly a person who is non-resident for tax purposes is non-resident for the purposes of post-war credit.

Mr. Bellenger

Has the prisoner of war to be non-resident for three years before he can claim the advantage of this concession?

Sir J. Anderson

No, Sir; I think not.