HC Deb 19 January 1943 vol 386 cc84-5W
Mr. Craven-Ellis

asked the Chancellor of the Exchequer whether his attention has been drawn to the great hardships imposed upon people who have their savings invested in property which has been destroyed by enemy action; and will he consider amending the present legislation to remove this hardship?

Sir W. Davison

asked the Chancellor of the Exchequer whether he has now been able to give further consideration to the hard case of persons whose property has been totally destroyed by enemy action but who do not receive the 2½ per cent. interest allowed on the agreed value payment until after the war, and are in the meantime, in many cases, without means while liable for the payment of interest on any mortgage on the property destroyed; and will steps be taken to remove this injustice?

Sir K. Wood

The suggestion that advances of war damage payments should be made in cases of hardship was considered when the Amending Act was before the House last year. I have examined the matter again, and have again come to the conclusion that the balance of advantage is against such a course. The Acts do a great deal to safeguard the interests of persons whose savings are invested in property, and other legislation has been passed to protect people who, for reasons arising out of the war, are not immediately able to meet their liabilities.

Sir W. Davison

asked the Chancellor of the Exchequer whether he will give an assurance that in the case of a lump sum payment by the War Damage Commission in respect of claims relating to a number of different financial years, such lump sum will not be added to a Surtax assessment for the year in which the lump sum payment is made, but will be apportioned to the years in respect of which the payment is due?

Sir K. Wood

I assume that my hon. Friend has in mind the interest which is payable on value payments to be made in due course under the War Damage Act, 1941. This interest will be subject to deduction of Income Tax at the rate in force at the time of payment and will constitute income for taxation purposes of the year of payment. Where, however, the conditions of Section 34 of the Finance Act, 1927, are fulfilled, relief for Surtax purposes will be available on the basis of spreading over the years of accrual.