HC Deb 12 December 1939 vol 355 cc1045-6W
Lieut.-Colonel Macnamara

asked the Secretary of State for War whether he is aw are that retired officers re-employed under Article 520 (b) of the Royal Warrant for Pay and Promotion are less well treated for Income Tax purposes than the same type of retired officer re-employed to do similar jobs but under Article 518; and whether he will arrange to adjust Article 520 (b) so that no hardship shall be suffered by officers in this category?

Sir V. Warrender

I understand that my hon. and gallant Friend is referring to the fact that a retired officer in receipt of a disability award, which is not subject to tax, if re-employed under Article 520 (b) of the Pay Warrant, drops this award during his period of full pay employment, and therefore does not receive the benefit of the tax concession on the disability pay to which he has ceased to be entitled, whereas, if re-employed under Article 518, he would retain his disability award, which would he free of tax.

Article 518 refers to officers recalled for service or specially taken into employment during a national emergency, Article 520 to officers re-employed in peace-time who may continue to serve during the emergency. The Royal Warrant provides that the Army Council may, during a period of national emergency, give notice to an officer to terminate his employment under the conditions of Article 52o and sanction his re-employment under the conditions of Article 518.

All cases of employment under Article 520 (b) are at present being reviewed, and re-employment under the conditions of Article 518 will be sanctioned where appropriate.