HC Deb 09 May 1950 vol 475 c197
49. Lieut.-Colonel Upton

asked the Chancellor of the Exchequer whether his regulations prescribe that compensation payments by nationalised industries for loss of office and emoluments shall be free of tax.

Sir S. Cripps

The question of Income Tax liability on these payments depends on the facts of each case.

Lieut.-Colonel Lipton

Can the Chancellor say in roughly what proportion these payments are liable to tax; is it half of them, or less, or more?

Sir S. Cripps

I am afraid I could not possibly say without a knowledge of the individual cases.

Colonel Crosthwaite-Eyre

Would it be true to say that where lump sums are paid under these regulations, no Income Tax is paid?

Sir S. Cripps

I am afraid that I am not going to give an interpretation of the law in that way.

Sir H. Williams

Having regard to the fact that there is a Motion being moved by His Majesty's Government tonight raising this issue, will the Chancellor inform himself before then?

Lieut.-Colonel Lipton

In order to clarify the situation, will the Chancellor make them all liable for tax and take steps in the Finance Bill to make the legal position quite clear?