§ 39. Mr. Turtonasked the Chancellor of the Exchequer whether he will end the anomaly under which British war widows pay Income Tax on pensions awarded under the Royal Warrant but are exempt from Income Tax on pensions awarded by the French Government.
§ Mr. DiamondCertain pensions paid by the French Government are exempt from tax in this country by virtue of the double taxation agreement with France, which dates from 1950. But this has never been held to justify exempting war widows' pensions paid by Her Majesty's Government.
§ Mr. TurtonWill the right hon. Gentleman represent to the Chancellor of the Exchequer the fact that relief from having to pay Income Tax by war widows on these pensions would not represent an inflationary measure in the forthcoming Budget and would be a popular step for him to take?
§ Mr. DiamondI will certainly convey to my right hon. Friend what the right hon. Gentleman has said on this subject.