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Income Tax Assessments

Volume 649: debated on Tuesday 21 November 1961

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asked the Chancellor of the Exchequer whether he will introduce legislation to mitigate the hardship to persons of widely fluctuating incomes due to their liability to pay large taxation on a notional previous year's assessment which may be in excess of the income being currently received.

Is noting it quite enough, in view of the fact that we did have a three-year average which was abolished by the Tories during one of their tax reduction pauses? Is not it a fact that many people who find their income fluctuating by drops of 50 per cent., 60 per cent. or 70 per cent. in any year face real hardship, and will the Minister do more than note it?

I think there are real difficulties about a general system of averaging, and also, I suggest, to allow averaging only where income has fallen by a specific amount. I agree with the hon. Gentleman about the importance of justice being seen to be done. Perhaps he would care to pursue the matter by correspondence or talk to me about it.