§ 48. Mr. Lipsonasked the Chancellor of the Exchequer what would be the cost of exempting Service pensions from Income Tax; and will he consider doing this.
§ The Chancellor of the Exchequer (Mr. Dalton)Wound and disability pensions are already exempt. Otherwise, however, Income Tax is chargeable, subject to personal allowances and reliefs, on all 228 income, and I can see no grounds for exempting Service pensions, as such, from tax. Information is not available regarding the cost of this suggested exemption.
§ Mr. LipsonWill the Chancellor not consider exempting pensions paid to widows and other dependants of men who have been killed?
§ Mr. DaltonNo, Sir, not as such. We endeavour to adjust the Income Tax to the total income of the recipient, and a large number of poor people, including those whom the hon. Member has in mind, are being exempted under the Finance Bill. We proceed on the basis of income as such, and not by a particular category.