Compensation for Loss of Office (Taxation)

HC Deb 06 April 1943 vol 388 cc505-6W

Mr. A. Edwards

asked the Chancellor of the Exchequer in what circumstances sums paid to directors and others as compensation for loss of office are exempt from Income Tax and Surtax?

Sir K. Wood

Generally speaking compensation for loss of office, as such, is not income for the purposes of the Income Tax. There may however be cases in which the circumstances are such that a payment described as compensation for loss of office is assessable to tax as emoluments of the office. The question of liability would depend, in each instance, on the facts of the particular case.