§ Mr. COURTHOPE
asked the Chancellor of the Exchequer whether the allowance for rebate of Income Tax on small incomes comprising both earned and unearned income is made entirely at the earned income rate of 9d., even in cases where the amount entitled to rebate exceeds the amount of earned income; and, if so, what is the statutory sanction for this practice?
§ Mr. LLOYD GEORGE
The answer is in the negative. Where, in the case of a small income partially earned, the abatement allowable exceeds the earned income, the balance of the abatement falls to be made against unearned income; and, if the relief is granted by way of repayment, the amount repayable in respect of the unearned income is calculated at the full rate of Income Tax in force.