§ 39. Wing Commander Hulbert
asked the Chancellor of the Exchequer why transfer grants which are wholly expended on removal by an officer are, by his regulations, made liable to Income Tax and Surtax.
§ Mr. R. A. Butler
Transfer grants are paid to civil servants in addition to the various other allowances which are intended to cover the specific expenses of the move. They are payments in the nature of compensation for disturbance which have to be treated as additional remuneration chargeable to tax.
§ Wing Commander Hulbert
Will my right hon. Friend bring this reply to the notice of the Service Ministers, and can he explain why officers who are in 1797 receipt of the emoluments and who have to expend it all should be really worse off after the event?
§ Mr. Erroll
Should not the grants, therefore, be approximately twice what they are in order that after deduction of tax they will provide the lesser amounts actually required?
§ Mr. Butler
I can give no further answer to these two supplementary questions today, but I will examine their content.
§ 40. Wing Commander Hulbert
asked the Chancellor of the Exchequer the total revenue received from Income Tax on transfer grants during the year ended 4th April, 1953; and what percentage of the total grant this represents.