§ Mr. Luceasked the Chancellor of the Exchequer what are the criteria for determining which awards should be exempt from taxation on the payment of annuities.
§ Mr. Robert Sheldon,pursuant to his reply [Official Report, 13th February 1978; Vol. 944, c. 63], gave the following answer:
I assume that the hon. Member is referring to the annuities paid to the holders of gallantry awards. These, like other annuities and pensions, are taxable income except where Parliament has decided to provide a specific exemption. Exemption was granted in respect of the Victoria Cross in 1956 as a special gesture associated with the centenary of that award. When annuities were introduced for the George Cross in 1965 and for the Albert Medal and Edward Medal in 1968 it was considered appropriate, in view of the similar status of these awards in their own spheres, to exempt them also.