§ Mr. Michael McNair-Wilsonasked the Chancellor of the Exchequer according to what principles maintenance payments and child allowances received by divorced or separated wives are subject to tax; and if he will examine the desirability of exempting such payments from taxation.
§ Mr. NottMaintenance payments received by divorced or separated wives are part of their total income; and it is a basic principle of our income tax system that an individual's liability depends on the amount of his or her income from all sources and on the allowances and reliefs due. I am afraid therefore that I cannot accept my hon. Friend's suggestion that such payments should be exempted from tax.