§ Mr. Haynes
asked the Chancellor of the Exchequer under what statutory provisions Christmas gifts from hon. Members to the House's catering staff are subject to income tax; and if he will seek to amend the law so that these gifts, and similar gifts to similar categories of staff, are not subject to income tax.
§ Mr. Ridley
Employees receiving cash gratuities, including Christmas gifts, are chargeable on these as emoluments of their employment under the provisions of the Taxes Act 1970. "Emoluments" are defined to include "all salaries, fees, wages, perquisites and profits whatsoever". I have no plans to introduce any amendment to the law which would exempt these payments.