§ 49. Mr. Keelingasked the Chancellor of the Exchequer whether it will always be necessary to propose changes in Income Tax several months in advance in order to give time for new Pay as you earn tables to be prepared; and whether an annual autumn Budget is therefore contemplated.
§ Mr. DaltonI am going into this question, but I do not contemplate an annual autumn Budget.
§ 58. Mr. Dainesasked the Chancellor of the Exchequer whether he will relieve from the incidence of Income Tax all pensions attached to all war medals and decorations.
§ Mr. DaltonNo, Sir. Income Tax is levied, subject to personal allowances and other adjustments, on all income, and I can see no good reason for exempting this particular category of income, as such.
§ 61. Major Bruceasked the Chancellor of the Exchequer whether, in view of the non-recurrent nature of the benefits given to personnel of the Armed Forces on demobilisation, he will consider issuing instructions to the Commissioners of Inland Revenue that, in addition to those amounts paid or payable as war gratuities, 1082 the sums paid or payable in respect of demobilisation leave be exempt from Income Tax as casual receipts within the existing provisions of the Income Tax Act, 1918.
§ Mr. DaltonNo, Sir. This is not possible under the present law, and I do not think that there is sufficient ground for exempting from Income Tax what is, in fact, a continuation of Service pay.
§ 62. Major Bruceasked the Chancellor of the Exchequer whether he is aware that the expenses allowed to individuals and companies assessable under Schedule D of the Income Tax Act, 1918, are on a more generous scale than those allowed to employees assessable under Schedule E; and whether he will consider amending Rule 9 to Schedule E in order that clerical and manual workers and other persons in receipt of wages or salaries assessable under Schedule E shall be entitled to claim as deductions for Income Tax purposes all expenses necessarily incurred by them in connection with their employment.
§ Mr. DaltonUnder Rule 9 of Schedule E an employee is already entitled to claim an income tax deduction for expenses incurred by him wholly, exclusively, and necessarily in the performance of the duties of his employment. It is true that the Schedule D rule governing expenses is somewhat wider, and I am now considering whether this can be justified.
§ Mr. Godfrey NicholsonWill a doctor be allowed to deduct the cost of Purchase Tax on his motor car?