§ 59. Mr. Bossomasked the Chancellor of the Exchequer if British citizens who receive large sums of money from foreign sources for efforts made or work done here, are liable, under his regulations, to the same tax on such sums as if they had received the money in Great Britain for efforts made or work done here.
§ Mr. JayUnder the Income Tax Acts liability attaches to profits or gains arising from a trade, profession or vocation carried on in the United Kingdom or from an employment exercised here, irrespective of the place of residence of the person or persons to whom services are rendered in the course of those activities. If the hon. Member wishes fuller information about the basis of liability in respect of any specific class of payments, perhaps he will communicate with me.
§ 65. Mr. A. Lewisasked the Chancellor of the Exchequer if he is aware of the hardship endured by old age pensioners, widowers, elderly bachelors and other single men, existing on small static pensions, who have to employ a housekeeper to attend to their daily wants, who only receive an Income Tax allowance of £110 per annum against a married man's wife allowance of £180, and, in view of the increased cost of living and the additional expenditure necessary to employ a housekeeper, whether he will consider increasing the housekeepers' allowance for Income Tax purposes to £180 per annum; and what would be the estimated cost of this change.
§ Mr. JayI am not clear what is the exact proposal in my hon. Friend's mind, and perhaps he would write to me.
§ Sir H. Roperasked the Chancellor of the Exchequer, with reference to the treatment for Income Tax of marginal cases 185W of age relief on income other than earnings, what the estimated cost would be of reducing the rate of recovery from five-eighths of the amount by which the income exceeds £500 to seven-twelfths and to one-half, respectively.
§ Mr. JayThe cost of a reduction of the, five-eighths fraction to seven-twelfths—which would extend the limit of marginal relief, where the income is wholly investment income, from £816 for a single person and £763 for a married person without children to £938 and £864 respectively—would be £500,000. A reduction to one-half—which would extend the marginal limits to £2,400 for single persons and £2,080 for married persons—would cost £3 million.