HL Deb 26 July 1972 vol 333 cc1491-2WA
LORD KILLEARN

asked Her Majesty's Government:

Why, in the case of those serving overseas during the 1939–1945 War, the long-delayed repayment of some Post-War Credits, as computed, undergoes a further reduction in respect of " Residence abroad " ; and whether it is not a fact that members of the Armed Forces, wherever stationed, are paid in the United Kingdom, and taxed on their Service pay as if resident in the United Kingdom.

EARL JELLICOE

The noble Lord is no doubt referring to those cases in which only a proportion of personal allowances were due in the years in which Post-War Credits arose because a British person living abroad received some of his income from sources liable to United Kingdom income tax and some from other sources. If the noble Lord is concerned about a specific case I will write to him, if he will send me particulars.

LORD KILLEARN

asked Her Majesty's Government:

Why the repayment of Post-War Credits is being made solely by crossed order payable through a bank ; why, in view of the large number of people who still do not possess bank accounts, the payee is not asked to state how he wishes the money paid ; and why it is arbitrarily stipulated that these long-delayed payments will be honoured only if the order is presented within six months.

EARL JELLICOE

The system of payment by crossed orders which have to be passed through a bank has substantial cost and administrative advantages. The Inland Revenue use it for all repayments including payment of Post-War Credits and there is no evidence of a general demand for a change in it. If the amount of a repayment does not exceed £50, a form is enclosed with it explaining how the recipient can encash it if he does not have a bank account. I am sending the noble Lord a copy of this form. The stipulation that the order should be presented within six months is in accordance with normal banking practice.