§ Sir R. Gower
asked the Financial Secretary to the Treasury whether he is aware of the hardship imposed on officers whose incomes prior to the war were taxable under Schedule D and whose service pay is now taxable under Schedule E; and what will be the amount of Income Tax payable during 1940 by a married man with two children whose sole income prior to 3rd September was Schedule D profits at the rate of £500 per annum and whose sole income since that date has been Army pay at a similar rate?
§ Captain Crookshank
An individual who discontinued his business or profession and joined the Army on 3rd September, 1939, would be charged to Income Tax for the current year on his actual profits from the business or profession for the period from 6th April, 1939, to 2nd September, 1939, and on his actual Army pay for the period from 3rd September, 1939, to 5th April, 1940. If his total actual income for the year was £500 from these sources, the liability to tax would be determined by reference to that amount, and in these circumstances it is not seen how any question of hardship arises. If, however, my hon. Friend has in mind any particular case, I shall be happy to have inquiry made into it.