HC Deb 16 November 1939 vol 353 cc856-7W
Captain Cunningham-Reid

asked the Chancellor of the Exchequer whether, in reference to the provisions of the Finance Act, 1938, that Income Tax allowance would be made in respect of expenditure incurred in connection with the provision of air-raid shelters in certain circumstances, there will now be an increased allowance commensurate with the increase in Income Tax?

Sir J. Simon

I assume that my hon. and gallant Friend refers to the provisions of Section 17 of the Finance Act, 1938, under which, subject to certain conditions, additions or alterations to buildings made solely for the purpose of affording protection in the event of air raids are to be wholly disregarded in estimating the annual value of the buildings for the purposes of Income Tax, Schedule A. The relief afforded by this provision for any particular Income Tax year will operate by reference to the standard rate of Income Tax in force for the year.

Mr. Boothby

asked the Chancellor of the Exchequer whether it is intended that the Defence (Finance) Regulations shall operate to levy Income Tax and Surtax, retrospectively, on income which was not liable to British Income Tax and Surtax in the year in which it accrued or was received?

Sir J. Simon

My attention has already been drawn to the possible effect of action under the regulations on the taxation position in certain cases, and I am giving consideration to the steps necessary to avoid any taxation hardship resulting from such action.

Mr. Tomlinson

asked the Chancellor of the Exchequer whether, in the case of a person receiving £26 per annum old age contributory pension, the whole amount is treated as subject to Income Tax where the recipient is liable to tax?

Sir J. Simon

A contributory old age pension is income of the recipient for Income Tax purposes, but the amount, if any, upon which tax is actually payable in a particular case will depend upon the total income of the recipient and the allowances and reliefs to which he is entitled. If the hon. Member has a particular case in mind and will send me details, I shall be happy to cause inquiry to be made.