§ Mr. CoxTo ask the Chancellor of the Exchequer what considerations led the Inland Revenue not to repay income tax to those probation service trainees from whom it was illegally deducted before 1992; and if he will make a statement. [18507]
§ Mr. Jack[holding answer 1 March 1996]: Payments to candidates sponsored by the Home Office to undertake training as probation officers were originally considered to be taxable and tax was deducted by the Home Office. However, following a decision of the special commissioners in 1990, it was accepted that the payments constituted a scholarship and were therefore exempt from tax. Repayments have been made to students who had tax deducted in error back as far as 1985–86. The Inland Revenue is considering further the position for earlier years with its legal advisers.