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Income Tax (Surplus Army Officers)

Volume 154: debated on Tuesday 23 May 1922

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asked the Secretary of State for War whether the compensation payable to officers in the Army who leave the Service in order to reduce the surplus of officers will be subject to Income Tax?

I have been asked by my right hon. Friend to answer this question. Army officers who leave the Service in order to reduce the surplus of officers will be chargeable with Income Tax in respect of their retired pay, as increased by the addition of the "compensation element," to which the Noble Lord refers. The lump sum gratuities which these officers also receive are not chargeable with Income Tax.