§ 53. Lieut.-Colonel Liptonasked the Chancellor of the Exchequer to what extent his regulations lay down that Christmas bonuses given by employers to employees in the form of savings certificates are liable to Income Tax.
§ The Economic Secretary to the Treasury (Mr. Douglas Jay)Christmas bonuses paid to employees are liable to Income Tax whether payment is made in cash or in something such as savings certificates which can be turned into cash. A special concession has, however, been made in recent years as regards cases in which an employer who had been in the habit of making Christmas presents in goods to subordinate employees decided to substitute gifts of equivalent value in the form of savings certificates, savings stamps, National Savings gift tokens or direct credits to savings bank accounts of the employees. In such cases, the value of these substituted gifts has not been treated for Income Tax purposes as income of the recipients, and my right hon. and learned Friend has decided that this concession shall be continued this year.
§ Lieut.-Colonel LiptonIs my hon. Friend satisfied that it is not possible to offer some further inducement to persuade employers and employees to follow this practice in regard to savings certificates?
§ Mr. JayWe are bound by Income Tax law in this matter and I am afraid it would not be possible to go further.