Colonel A. Evansasked the Secretary of State for War whether he can now state the non-commissioned ranks of the Army liable for the first time to Income Tax under the recent Budget proposals?
§ Captain MargessonIncome Tax liability depends so much on individual circumstances, and the rates of pay of other ranks are so various when tradesmen's and other forms of special pay are taken into account that it is not easy to give any simple answer to this Question. But it is quite clear that the lowering of the exemption limit and the reduction of personal and other allowances will bring a number of soldiers mainly tradesmen of non-commissioned rank previously exempt within the scope of the Income Tax. In view of the complicated nature of the subject, I append a more detailed statement:
- 1. Single men.—Broadly speaking, non-tradesmen below the rank of serjeant remain exempt from tax, but all non-tradesmen Serjeants will now be liable. As regards tradesmen, very highly skilled private and a greater proportion of corporals and lance-corporals than before are now liable.
- 2. Married men without children.— Whereas only non-tradesmen warrant officers Class I and tradesmen of ranks above serjeant were previously liable, the new proposals bring in (a) non-tradesmen
40 warrant officers Class II, warrant officers Class III and colour-serjeants, and (b) tradesmen down to and including most lance-serjeants. - 3. Married men with children.—All married soldiers with children were previously exempt from tax. Under the new proposals the following soldiers who are married and have one child are liable: (a) non-tradesmen warrant officers Class I and certain warrant officers Class II, for example, regimental quartermaster-ser-jeants; (b) tradesmen of and above the rank of colour serjeant. Married men of all ranks with more than one child are still wholly exempt.