§ 67. Miss Baconasked the Chancellor of the Exchequer if under his regulations a husband separated from his wife is assessed as a married man for Income Tax purposes; what income tax repayment a wife makes on a separation allowance; and if it is assessed as earned or unearned income.
§ Mr. Glenvil HallA husband separated from his wife either by decree or by agreement is not entitled to receive the Income Tax married allowance. In166W such circumstances the wife is regarded as a separate individual for Income Tax purposes, and, equally with the husband, can claim the personal allowance applicable to an individual, and also any other reliefs to which she may be entitled in respect of her income, which includes any separation allowance that she is entitled to receive from her husband. A separation allowance does not rank as earned income for Income Tax purposes.