HC Deb 02 May 1940 vol 360 cc937-8W
Colonel Burton

asked the Financial Secretary to the Treasury whether he is prepared to consider and, if necessary, modify the position of directors of com- panies and others holding offices liable to taxation under Schedule E upon the basis of the preceding year's emoluments, and who, in many cases, if they retain their offices and continue to discharge their duties may be liable to taxation in the current year upon fees or remuneration which they have no expectation of ever receiving, and relieve of taxation, for so long a period as they receive no fees or remuneration, directors or others so placed who formally waive their fees or remuneration for the current year but continue to discharge their duties?

Captain Crookshank

My right hon. Friend the Chancellor of the Exchequer does not see his way to propose legislation to carry out my hon. and gallant Friend's suggestion. Where a director retains his office and continues to discharge his duties, but formally waives his remuneration or fees for a particular year, the reduction in emoluments is, under the preceding year basis of assessment, taken into account in computing the assessment for the succeeding year. Moreover, I would remind my hon. and gallant Friend that my right hon. Friend, as stated in his Budget speech, proposes that the provisions of Section 11 of the Finance (No. 2) Act, 1939, which authorises relief in cases where, owing to circumstances connected with the war, an individual's actual earned income for 1939–40 is materially less than his earned income as assessed, shall be repeated for the year 1940–41.