HC Deb 22 July 1910 vol 19 cc1718-9W
Mr. CARR GOMM

asked the Chancellor of the Exchequer whether he is aware that under the Finance (1909–10) Act, 1910, the Paymaster-General's Office is informing those widows of naval and military officers entitled to pensions who ate living abroad that two years' Income Tax must be deducted from their incomes this year, and that that Income Tax must be at the rate of 1s. 2d. in the £, in spite of the fact that the incomes are in many cases as low as £70 a year, or about 4s. a day; whether he is aware that hitherto these pensioners have been able to claim abatement, but that, owing to Clause 71 of the Finance Act, they are not only unable to do so, but have to pay at the higher rate of unearned incomes; whether he can take steps now to prevent so great a burden falling on these small incomes; and whether he will amend the Finance Bill of this year so that these pensioners who are living abroad for other reasons than that of health—namely, better education of their children, etc.—shall not be prevented from obtaining abatement or exemption?

Mr. LLOYD GEORGE

In those cases in which the pensions in question were paid for 1909–10 in full prior to the passing of the recent Finance Act deduction of Income Tax is being made now for that year. Without committing myself in any way in advance, I will consider the question of amending Section 71 (1) of the recent Finance Act in the light of the experience now being gained.