Mr. Boothyasked the Chancellor of the Exchequer whether recipients of the D.C.M. are taxed on their special emolument of 6d. a day; and, if so, whether he will consider exempting this from tax.
§ Sir J. AndersonThe payments to which my hon. Friend refers represent an addition to the pension in respect of military service and as such are liable to Income Tax in accordance with the general rule applying to payments from public funds. The amount of tax, if any, payable in a particular case would, of course, depend upon the total income of the pensioner and the Income Tax allowance he could claim. I am afraid that I do not see my way to propose legislation to exempt these pensions from tax.