Compensation for Loss of Office (Income Tax)

HC Deb 29 June 1943 vol 390 cc1480-1W

Mr. Fraser

asked the Chancellor of the Exchequer whether moneys given as compensation for loss of office, in the case of a company director or other executive, are exempt from Income Tax assessment; and whether wages paid to a worker in lieu of notice arc similarly treated?

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. A payment to a workman representing wages in lieu of notice is not regarded as income for Income Tax purposes.