§ Major HILLSasked the Chancellor of the Exchequer whether he is aware of the serious delays existing in repayment of Income Tax; and can repayment be accelerated?
Mr. YOUNGI would invite my hon. and gallant Friend's attention to the reply922W which I gave on this subject to the hon. Member for South Kensington (Sir W. Davison) on the 13th June. I am sending him a copy of that reply.
§ Mr. MOSLEYasked the Financial Secretary to the Treasury whether he will make inquiries into the reason why the Treasury have refused to exempt from Income Tax the disability pension awarded to Captain (retired) D. A. 923W Hosford, late of the Cavalry Command Depot, Eastbourne; whether he is aware that this officer was, owing to an injury received on duty in India, retired in 1909 with a pension of 3s. 2d. per day payable from British funds, to which was subsequently added an injury pension of £50 per annum payable by the India Office; that in 1914 this officer was recalled to his regiment and served till 1918; that in 1918, owing to a breakdown as a result of his work, this officer was again retired; and that his pension of 3s. 2d. per day was increased to 7s. 4d. per day on the report of his medical board; and on what grounds the disability retired pay of this officer is made liable for Income Tax?
Mr. YOUNGThe Income Tax assessment to which my hon. Friend refers would be made, not by the Treasury, but by the Income Tax Commissioners for the Paymaster-General's Department, upon particulars furnished by the Ministry of Pensions. I would refer my hon. Friend to the proviso to Sub-section 2 of Section 16 of the Finance Act, 1919, under which
where the amount of any retired pay or pension to which this Section applies is not solely attributable to disablement or disability, the relief conferred by this Section shall extend only to such part as is certified by the Minister of Pensions, after consultation with the appropriate Government Department, to be attributable to disablement or disability.I gather that the question of Captain Hosford's Income Tax liability in respect of his pension is being looked into, and that, if it is found possible to afford him any further relief under the provisions of the law, the appropriate adjustment or repayment of tax will be made.