§ Mrs. Knightasked the Chancellor of the Exchequer if he will take steps to provide that, where official errors have led to underpayment of individual service pensions, tax on the lump payment rectifying the error is levied at the rate in force when the money should properly have been paid, provided that the standard rate of income tax has been increased since that date.
§ Mr. Harold LeverThe P.A.Y.E. regulations require tax to be deducted by reference to the tax rates in force at the date of payment; but a taxpayer receiving arrears of pay or pension can in due course require the arrears to be assessed 237W to tax for the income tax year for which they are payable, with a consequential adjustment of the tax deducted under P.A.Y.E. If the hon. Member has a particular case in mind and will send me details I shall be glad to look into it.