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Service Pay (Income Tax)

Volume 414: debated on Tuesday 23 October 1945

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51.

asked the Chancellor of the Exchequer if the accumulated pay accrued to Service personnel who have been prisoners of war is subjected to Income Tax

The Service pay of members of the United Kingdom Forces who have been prisoners of war was liable to United Kingdom Income Tax in the same way as the pay of members of those Forces who were serving abroad.

In view of the hardship which the small man is suffering would the Minister give the matter his consideration?

I do not know whether, on principle, we can justify giving a tax concession to officers and other ranks who were captured, as against those who were not captured.

54.

asked the Chancellor of the Exchequer whether he will exclude from personal income tax assessments the 56 days' leave pay now being given to all Servicemen on demobilisation, as the inclusion of this pay in an individual's taxable income is a deterrent to his taking up remunerative employment before his leave pay ceases.

I have no power to do this under the existing law, and I doubt whether the deterrent to which the hon. and gallant Member refers is a factor of great practical importance.

Will the Minister not make the welcome announcement that he will withdraw the tax from all pay?