Oral Answers to Questions — Personal Injury Compensation (Income Tax)

– in the House of Commons at on 29 March 1944.

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Photo of Major Abraham Lyons Major Abraham Lyons , Leicester East

asked the Chancellor of the Exchequer if he will state the liability and basis of assessment for Income Tax in respect of sums specified and paid as loss of wages or income in any settlement of claims for damages for personal injury where compensation is awarded.

Photo of Sir John Anderson Sir John Anderson , Combined Scottish Universities

A lump sum awarded as compensation for personal injury is not regarded as income for Income Tax purposes. If my hon. and gallant Friend has any particular case in mind and will send me a statement of the facts, I will have inquiries made and communicate with him in due course.

Photo of Major Abraham Lyons Major Abraham Lyons , Leicester East

May I ask whether, apart from the lump sum which is paid as compensation personally, there is an additional sum paid for loss of wages during incapacity?

Photo of Sir John Anderson Sir John Anderson , Combined Scottish Universities

I am very sorry, but I could not hear the question.