§ 20. Mr. Chapman
asked the Chancellor of the Exchequer what estimate he has made of the cost of abolishing tax 1118 liability upon the repayment of post-war credits to pensioners who have paid all other taxes at the date of their retirement.
§ Mr. Patrick Jenkin
I assume that my hon. Friend is referring to cases where post-war credits are reduced because amounts of war-time tax were unpaid and remitted. To ignore these amounts would mean repaying tax which had never been paid: the cost of doing this is estimated to be about £5 million.
§ Mr. Chapman
That reply reassures me, but does my hon. Friend accept that a lot of people feel bitter when they do not get the amount printed on their certificates? In view of the small amount involved, does not my hon. Friend feel that it would be a good thing to remove this liability?
§ Mr. Jenkin
I would find it difficult to agree with my hon. Friend on this. It was normal practice during and just after the war to warn taxpayers that the amount of their post-war credit would be reduced for tax unpaid and remitted. It is not possible to say that this was done in every case, but it was done in the great majority of cases.