HC Deb 27 February 1951 vol 484 cc1907-8
46. Sir Ian Fraser

asked the Chancellor of the Exchequer if, in calculating the individual liability for Income Tax, he will allow as an expense out-of-pocket expenditure necessarily incurred by a person in the conduct of public business or recognised voluntary service where there is no remuneration.

The Chancellor of the Exchequer (Mr. Gaitskell)

No, Sir. Income Tax is charged by reference to income from particular sources and expenses can only be allowed as a deduction from the particular source of income to which they relate. Out-of-pocket expenses incurred in doing unpaid work for the Government can be reclaimed. There is nothing to prevent similar arrangements being made by other bodies many of whom do in fact arrange to repay expenses.

Sir I. Fraser

Does the right hon. Gentleman appreciate that whereas a director, a trade union secretary, or even a Member of Parliament, can get an allowance where he gets fees, persons who work for, say, the Women's Institutes, the British Legion, the Manor House Hospital, or even an old age pensioner who is a J.P., have to pay it out of their taxed income, and will the Chancellor make a concession in the Budget?

Mr. Gaitskell

No, Sir. There is nothing to prevent the voluntary bodies to which the hon. Member referred from paying these expenses, but I do not see why the taxpayer should pay them.

51. Mr. Wood

asked the Chancellor of the Exchequer how far his regulations Permit the housekeeper's tax-free allowance to be available to spinsters as well as to widows and widowers.

Mr. Gaitskell

A spinster is entitled under the law to an allowance of £50 if she employs or maintains a resident housekeeper for the purpose of looking after a child for whom she is entitled to Income Tax relief. It is a condition of the allowance that a woman claimant must be either incapacitated or engaged full time in business or employment, except in the case where the child is the claimant's brother or sister and the housekeeper a female relative.

Mr. Wood

Would the right hon. Gentleman reconsider this matter before his Budget Statement, in view of the considerable difficulties suffered by an unmarried woman who gets left with a farm or other business to carry on and who is not the recipient of these benefits which can be received by widowers or widows?

Mr. Gaitskell

The hon. Member will not expect me to comment on that, but I will take note of his suggestion.