§ 57. Mr. Swingler
asked the Chancellor of the Exchequer to what extent his Department has not levied Income Tax on Territorial Army pay in the last 10 years; what new instructions on the subject were issued in 1963; and why he is now attempting to levy such taxation in advance.46W
§ Mr. Green
Territorial Army pay has always been liable to Income Tax. The only instruction issued to Inspectors on the point in 1963 dealt with the tax liability on the taxable bounty received by members of the Territorial Army Emergency Reserve. As regards the last part of the Question. I presume the hon. Member is thinking of arrangements made for spreading the tax due on the year's Territorial Army pay over the tax year, either by an adjustment of the P.A.Y.E. code number applicable to the taxpayer's full-time employment or by direct collection of the tax on Territorial Army earnings.