Mr. Rostron Duckworthasked the Chancellor of the Exchequer whether the concession under which war disability pensions are exempted from Income Tax is applicable to the damages recovered by Service men disabled in accidents whilst on duty, and to the income from such damages, in cases where the weekly value of the damages so recovered is deducted by the Ministry of Pensions from the disability pension normally payable?
§ Sir K. WoodA lump sum received by a Service man as damages for disablement by accident is not income for Income Tax purposes. Any income arising from the investment of such a lump sum would constitute assessable income and there is316W no provision in the law for the exemption of such income in cases like those to which my hon. Friend refers. The amount of tax, if any, which would be payable would depend on the allowances and reliefs to which the individual concerned was entitled. If my hon. Friend has any particular case in mind I shall be glad to make inquiries if he will send me the necessary details.