HC Deb 24 March 1953 vol 513 cc81-2W
Viscount Hinchingbrooke

asked the Financial Secretary to the Treasury what untaxable allowances are paid to what categories of persons out of the Consolidated Fund or out of moneys provided by Parliament.

Mr. Boyd-Carpenter

The following payments are specifically exempted from Income Tax under the Sections of the Income Tax Act, 1952, mentioned:

Section 380 (1) and (2): Wounds and disability pensions paid to members of the Forces, the Mercantile Marine and certain other persons.

Section 380 (3): Allowances to widows of members of the Forces in respect of children.

Section 456: Allowances to Crown Servants certified by the Treasury to represent the extra cost of living abroad.

Section 457: Certain gratuities, bounties and allowances paid to members of the Forces.

In addition lump sum superannuation payments to Crown servants, National Assistance payments and a number of other payments in the nature of maintenance grants or compensation for injury or for loss of earnings are not regarded as income assessable under the Income Tax Acts, and certain allowances (e.g., for travelling and subsistence) paid to Crown servants are not taxable because they are simply reimbursements of expenses necessarily incurred in connection with their work.

Under Rule 8 of the Rules applicable to Schedule E as laid down in the Ninth Schedule to the Income Tax Act, 1952, the Treasury fix sums for various classes of persons, including Members of Parliament, as representing a fair equivalent of the average annual amount necessarily incurred in the performance of their duties and these sums are accordingly paid free of income tax.