§ Colonel Clarkeasked the Financial Secretary to the Treasury why Royal Fleet Reservists' retainers are subject to Income Tax, whereas training bounties for the R.A.F.V.R. are tax free.
§ Mr. Glenvil HallTraining bounties to members of the R.A.F.V.R. and other Reserve and Auxiliary Forces were exempted from tax by Section 27 of the Finance Act, 1947, but as the Chancellor of the Exchequer explained in the House—OFFICIAL REPORT, 9th July, 1947; Vol. 439, c. 2368—this exemption does not apply to retainers, such as those of the Regular Reserves which are paid primarily for liability for service in an emergency and are not of the same nature as the training bounties.