Disabled Ex-Servicemen (Taxation).

Oral Answers to Questions — Trade and Commerce. – in the House of Commons on 9th June 1942.

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Photo of Major Basil Peto Major Basil Peto , Birmingham King's Norton

asked the Chancellor of the Exchequer whether, in view of the fact that earned income is taxed at a lower rate than unearned income, he will investigate the possibility of reducing the rate of tax at present charged on the pensions of men invalided from the Services whose physical condition makes it impossible for them to engage in occupations which will bring them earned income of any kind?

Photo of Sir Kingsley Wood Sir Kingsley Wood , Woolwich West

Wounds pensions and disability pensions granted on account of medical unfitness attributed to naval, military or Air Force service are not liable to tax. Other pensions which are granted in respect of past service are treated as earned income, and the appropriate deduction is allowed. I am afraid I cannot see my way to propose any further special relief.