§ Lord CHARLES BERESFORDasked the Chancellor of the Exchequer whether naval officers are entitled to a deduction from Income Tax for disbursements necessarily incurred in the performance of their duties; whether he is aware that in the event of officers not being able to find accommodation on board they are given lodging and compensation allowance, but the Income Tax Commissioners insist on officers paying Income Tax on lodging and compensation allowance; and whether he will explain to the House if this lodging and compensation allowance is in lieu of an expense necessarily incurred by naval officers in the performance of their duties?
§ Mr. LLOYD GEORGEI am not sure that I fully understand the first part of the Noble Lord's question; if a naval officer had to disburse money, say, for travelling on the public service this disbursement would be repaid to him and no Income Tax question could arise with regard to it. The answer to the second part of the question is in the affirmative, but where allowances are of a temporary character the Income Tax is not charged. As regards the last part of the question, lodging and compensation allowances can scarcely be said to be given in lieu of expenses necessarily incurred by naval officers in the performance of their duties.