§ Mr. HENRY TERRELL
asked the Chancellor of the Exchequer what is the aggregate amount which Income Tax is estimated to produce on pay of officers in the Army under the Finance (No. 3) Bill and prior to the passing of the Resolutions on which that Bill is founded; and what would be the loss to the Exchequer if the pay of officers in the Army were relieved from liability to Income Tax?2010W
§ Mr. McKENNA
It is roughly estimated that, at the rates imposed by the Finance (No. 3) Bill, Income Tax on the pay of naval and military officers will amount for 1915–16 to about £1,000,000 and for 1916–17 to about £1,200,000. At the rates in force prior to the passing of the Resolutions the corresponding figure would be about £750,000. The exemption of the pay and its exclusion from the computation of the officers' total income would, at a rough estimate, perhaps cost the Exchequer £1,250,000 for 1915–16 and £1,500,000 for 1916–17.