§ Mr. BROOKESasked (1) the Pensions Minister whether he is aware that Army pensioners, having served in the present War and with a long military record in addition, are being charged Income Tax under Schedule D on a sum as little as 19d. a day, and that thus a man who receives £29 annually has to pay £3 5s. 3d.; and whether this is the usual custom in similar cases of the kind; and asked (2) the Chancellor of the Exchequer whether Army pensioners receiving as little as 19d. a day are being assessed for Income Tax under Schedule D, and therefore have to pay in duty a considerable amount of their income; and, if so, whether he will consider the possibility of removing this alleged hardship?
§ Mr. BONAR LAWLiability to Income Tax depends upon the total amount of the income, and not upon the nature of the income. No pensioner whose total income does not exceed £130 a year bears any Income Tax. Incomes above that limit bear tax at the appropriate rates after the allowance of the various statutory dedueterms—abatement, children allowance, wife allowance, etc.