§ 51. Mr. Channonasked the Chancellor of the Exchequer whether, with the view to facilitating town and country planning and providing more flexibility with regard to transfer of workers from non-essential to essential work, he will now reconsider the present Income Tax rules which prevent travelling expenses to and from work being a legal expense for Income Tax purposes.
§ Sir S. CrippsNo, Sir.
§ 54. Mrs. Castleasked the Chancellor of the Exchequer whether he will amend his regulations so as to enable a man with an invalid wife to claim Income Tax relief in respect of a housekeeper, whether or not there are children in the home.
§ Sir S. CrippsThis would require an alteration of the law. My hon. Friend will not expect me to anticipate my Budget Statement.
§ Mrs. CastleIs the Chancellor aware that a widow is entitled to a housekeeper's allowance even if there are no children? Does he not agree that a man with a bedridden wife has the same expenses as the widower and should be given an equal allowance?
§ Sir S. CrippsI am afraid that I do not propose to anticipate my Budget Statement.
§ Mr. Boyd-CarpenterWill the Chancellor at least say that he is considering the grave injustices caused by the present rules?
§ Sir S. CrippsNo, Sir.
§ 55. Sir G. Jeffreysasked the Chancellor of the Exchequer why the retired pay of retired officers residing in the Channel Islands is under taxation code one, with the result that they are not entitled to any tax reliefs or allowances in respect of it; and whether he will arrange for such retired officers to have the benefit of the same reliefs and allowances as would be paid to them if they were resident in the United Kingdom.
§ Sir S. CrippsA retired officer residing in the Channel Islands is entitled to the full Income Tax personal reliefs and allowances, provided that the whole of his income is liable to United Kingdom 1902 Income Tax. If he has sources of income other than his service pension and part of his income is not liable to United Kingdom Income Tax, he is entitled to a proportion of the reliefs and allowances; for example, if one-half of his income is liable to our tax he is entitled to one-half of the reliefs and allowances. The Pay-as-you-earn coding depends on the circumstances of the individual case. If the hon. and gallant Member will send me particulars of the cases which he has in mind, I will have inquiries made.
§ Sir G. JeffreysIs the Chancellor aware that the homes of many of these retired officers were considerably damaged during the German occupation with a consequent loss of furniture and effects and that they have had no real compensation? Is he further aware that their pensions are liable to the 4s. in the £ Channel Islands' tax? Is it fair to penalise them in this way?
§ Sir S. CrippsWe are not penalising them at all. We are not charging anything in regard to that part of their income which is liable to the Channel Islands' Income Tax.