HC Deb 15 July 1958 vol 591 cc989-90
21. Mr. Gower

asked the Chancellor of the Exchequer if he is aware that in many cases where repayments of post-war credits are made to the widows or children of the deceased holders of such credits, deductions are made for alleged arrears of Income Tax, said to have been incurred by the deceased persons 15 and 16 years ago; if he will take steps to ensure that the Board of Inland Revenue discontinues this practice; and if he will make a statement.

Mr. Amory

Post-war credit is payable in full only if all the tax for the relevant year was paid. This is made clear in a note on the certificates. While I sympathise with those who receive less than they expect, I am afraid I cannot authorise payment where it is not due.

Mr. Gower

Is my right hon. Friend aware that many widows and dependents of extremely modest means in my constituency of Barry have been confronted for the first time with demands for these alleged arrears of Income Tax? In many cases they are quite small amounts which are stated to be in respect of fifteen years ago. Does not he think it pathetic that the Treasury should be chasing people in this income group? Should not this matter be treated in a different way?

Mr. Amory

I wish I could find a way of making sure that every beneficiary knows whether or not there is tax due for the year in question, but I understand that these cases are limited to those where there was a transfer of certificates to a beneficiary prior to 1950.

Since that date, whenever a certificate has been transferred a note is made on it of any sum still due in taxation. I wish I could think of some other way whereby I could make sure that every beneficiary knew, but if all certificates were sent back for checking it would mean an enormous amount of labour.

Mr. Shurmer

Is the Chancellor aware that this affects not only dependants drawing post-war credits but people who are themselves drawing their own post-war credits? Is he aware of a case where, out of £33 post-war credits, £6 remained after deduction of tax arrears over a period of sixteen years? Surely there are means whereby the Inland Revenue can inform people of these arrears or deduct them year by year. Will he look into these matters and look into special cases of hardship where people who have thought that they had a nest-egg find that they have none?

Mr. Amory

I realise how disappointing it is to the individual, but I repeat that if all certificates had to be sent back for checking it would mean an enormous amount of work. I have looked into this matter to discover whether there was any other conceivable way of dealing with it, but so far I have not been able to find one.