HC Deb 29 March 1979 vol 965 cc356-7W
Mr. Stallard

asked the Chancellor of the Exchequer how much it would cost to exempt from tax those ex-Regular survivors of the Second World War who are holders of a gallantry award not exempted from income tax payments.

Mr. Robert Sheldon

Information on which to base a precise estimate is not available, but the likely cost would be small.

Mr. Stallard

asked the Chancellor of the Exchequer why some gallantry awards are exempt from tax while others are not.

Mr. Robert Sheldon

The pensions and annuities paid to the holders of gallantry awards, like other annuities and pensions, are taxable income except where Parliament has decided to provide a specific exemption.

Mr. Stallard

asked the Chancellor of the Exchequer why a gallantry award should be subject to tax when the consequences of its receipt, in many cases a war pension, is tax free.

Mr. Robert Sheldon

Pensions and annuities are in general taxable, but some war pensions paid on account of wounds or disablement are exempt from tax because they are regarded as compensation for injury.

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