Captain O'NEILLasked the Chancellor of the Exchequer whether his attention has been called to the position with regard to Super-tax of those flag-officers of the Navy who are entitled to table-money, which is given to them for the specific purpose of providing a mess for their flag-captain, flag-lieutenant, and secretary, and other members of their staff, and for dispensing hospitality at 2510W home and abroad consonant with their position; whether such an allowance may cause some officers to become liable to Super-tax who would not otherwise be liable, for instance, an officer with private income and ordinary pay of £3,906 a year and table-money of £3 a day would become liable to Super-tax, resulting from the payment of such table-money, to the amount of £50 0s. 6d.; and whether, having regard to the fact that such allowances are not intended to, and in fact do not, go into the pockets of such officers, he will give orders that they shall not be reckoned in returns for the purpose of Super-tax?
§ Mr. LLOYD GEORGEThe liability to Super-tax depends upon the Income Tax assessment. Table allowances are regarded as emoluments of office, and are charged with Income Tax. Super-tax would therefore be chargeable under the circumstances mentioned in the question, subject to the terms of Section 66 (2) (c) of the Finance (1909–10) Act, 1910, which provides that there shall be deducted, in the case of a person in the service of the Crown abroad, any such sum as the Treasury may allow for expenses, which, in their opinion, are necessarily incidental to the discharge of the functions of his office, and for which an allowance has not already been made.