HC Deb 26 January 1956 vol 548 c353
34. Mr. Page

asked the Chancellor of the Exchequer if he will initiate legislation which will enable the courts to assess damages for loss of earnings without regard to the injured party's tax liability but which will make any such damages liable to assessment for tax over a period.

The Financial Secretary to the Treasury (Mr. Henry Brooke)

The question of amending the law governing damages for loss of earnings from physical injury does not fall within my right hon. Friend's province. He is not at present satisfied that any alteration of the tax law in this matter is called for.

Mr. Page

Is my right hon. Friend aware of the recent decision of the courts? Although the position before this decision was unfair to the Chancellor, in that the successful litigant obtained the benefit of the tax, does he not think that it is even more unfair to the Chancellor now that the unsuccessful litigant obtains the benefit of the tax? Is not this really a tax matter?

Mr. Brooke

I understand that on the Order Paper for a future day there is a Question addressed to my right hon. and learned Friend the Attorney-General which is connected with the first part of my hon. Friend's Question. I think that it would be better for us to see what answer is given to that Question before we follow up all the tax implications.