Sir F. HALLasked the Financial Secretary to the War Office if Income Tax is charged on officers' allowances in respect of children; what is the amount of the allowance with and without Income Tax deducted; and if, as the allowance is based on the minimum amount considered necessary for the maintenance of the child, he will take steps to exempt these payments from taxation and to meet cases in which up to now such allowances have been taxed?
Captain GUESTThe rate of allowance is £2 per month per child, up to a total of £96 per annum, for officers not above the rank of captain. Majors receive an allowance at half the above rate. The War Office has no option but to carry out the law in matters of taxation. Any representations as to change in the law should be made to my right hon. Friend the Chancellor of this Exchequer.
§ Mr. BOTTOMLEYasked the Chancellor of the Exchequer whether he can see his way to recommend the remission of Income Tax on the lump sums being paid as gratuity to officers in respect of their several years of war service?
§ Mr. BALDWINI would refer the hon. Member to the reply which I gave on this subject on Thursday last.