Income Tax (Armed Forces).

Part of Oral Answers to Questions — National Finance. – in the House of Commons on 10th February 1942.

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Photo of Sir Kingsley Wood Sir Kingsley Wood , Woolwich West

Under current practice the position to which my hon. Friend refers arises in the case of naval officers and of non-commissioned personnel of all those services but not in the case of Army and R.A.F. officers. These variations in taxation treatment reflect certain differences in the conditions under which the allowances are issued. In consequence, however, of a recent change in their condition of issue, naval officers' allowances will, as from the 6th April next, enjoy the same exemption as officers' allowances in the other Services.

In existing circumstances I feel that the position of the children's allowances for non-commissioned ranks is anomalous and I have decided, as a war-time concession, that, as from the next Income Tax year beginning on 6th April next, these allowances shall be treated for taxation purposes in the same way as the officers' allowances. The effect will be that, as from next year, the children's allowances for all Service ranks will generally be free of Income Tax. I must emphasise that this concession is only for the duration of the war and the position of all Service allowances will have to be reviewed after the war.