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Income Tax: Armed Forces Of The Crown

Volume 438: debated on Wednesday 4 June 1947

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  • (a) the Income Tax (Employments) Act, 1943, shall extend to pay, pensions or other emoluments in respect of service in or with the armed forces of the Crown assessable to income tax under Schedule E;
  • (b) regulations under Subsection (1) of Section two of that Act may make such special provision in relation to members of the armed forces of the Crown or women serving in any of the capacities mentioned in the Sixth Schedule to the Finance Act, 1946, as may appear appropriate."—[Mr. Glenvil Hall.]
  • Surely, we are to have an explanation from the Financial Secretary about this?

    11.18 p.m.

    The Budget Resolutions, which this Committee agreed to earlier on, imposed the Income Tax for 1947/1948, and also provided that

    "All such enactments as had effect with respect to the Income Tax for the year 1946/1947, other than such enactments as by their terms relate only to tax for that year, shall have effect for the year 1947/1948."
    These words mean that the Resolution should include provisions in any other Act of Parliament in so far as they refer to the collection of Income Tax for the current year. That included the P.A.Y.E. arrangements embodied and given legislative sanction in the Income Tax (Employments) Act, 1943. But the P.A.Y.E. arrangements in the 1943 Act did not apply to the Armed Forces of the Crown, and the Resolution on Income Tax moved at the end of the Chancellor's statement on Budget day, should therefore have included a reference to Section 30 of the Finance Act, 1946. That would have enabled the Finance Bill, which will be before the House shortly, to include a provision to apply P.A.Y.E. to the Armed Forces of the Crown as from 6th April this year. The omission was a mistake, but, I hope, not a heinous one. This Resolution, which I ask the Committee to approve tonight, does not increase or diminish the liability of any member of the Armed Forces to Income Tax. It simply extends the method of assessment and collection as applied to all those who pay Income Tax under Schedule "E".

    Question put, and agreed to.

    Resolution to be reported Tomorrow; Committee to sit again Tomorrow.