§ Mr. CAIRNSasked the Chancellor of the Exchequer whether a soldier who was demobilised in March, 1919, has to pay tax on his earnings over £130; and if a soldier was demobilised on 6tn April or after has he not to pay a tax until he has earned £160?
Mr. CHAMBERLAINI would refer the bon Member to the provisions of Sections 42 and 52 of the Income Tax Act, 1918, from which it will be seen that the exemption limit of £160 and the other special Income Tax reliefs afforded to soldiers apply only where the soldier has served or is serving during the year of assessment, either out of the British Islands or for at least one month continuously in the British Islands. Where there has been no such service within the year of assessment the ordinary exemption limit of £130 applies.