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Industrial Accidents, Compensation (Taxation)

Volume 388: debated on Thursday 22 April 1943

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asked the Chancellor of the Exchequer whether, in cases of awards of compensation for loss of limbs in industrial accidents, he will consider making some allowance from Income Tax for cost of annual repairs to artificial limbs or, alternatively, allow such awards to be free of tax?

Awards of compensation for personal injury are not regarded as income for Income Tax purposes. If my hon. Friend has any case in mind in which it is suggested that such compensation is liable, I will make inquiries if he will send me particulars. With regard to the suggestion for an Income Tax allowance in respect of the cost of annual repairs to an artificial limb I would refer my hon. Friend to my reply to the hon. Member for Govan (Mr. N. Maclean) of 8th September last.

Will my right hon. Friend bear in mind that the income is often insufficient to pay for the cost of repairs and renewals, owing to high taxation?