Soldiers' Lodging Allowance (Income Tax)

Oral Answers to Questions — National Finance – in the House of Commons at 12:00 am on 5 August 1947.

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Photo of Mr John Leslie Mr John Leslie , Sedgefield 12:00, 5 August 1947

asked the Chancellor of the exchequer whether his attention has been called to the anomaly created and the hardships imposed upon a soldier, unable to get barrack accommodation, who has to pay Income Tax on the lodging allowance of 2s. 6d. a day; and if he will consider making some allowance to mitigate what soldiers consider to be a decided grievance.

Photo of Mr Hugh Dalton Mr Hugh Dalton , Bishop Auckland

I would refer my hon. Friend to the reply by my right hon. Friend the Financial Secretary to the Treasury to his question on the subject on 11th July.

Photo of Mr John Leslie Mr John Leslie , Sedgefield

Does not my right hon. Friend consider that 2s. 6d. a day for lodging allowance when a soldier, through no fault of his own, cannot get barrack accommodation, is really inadequate if he has to pay Income Tax on top?

Photo of Mr Hugh Dalton Mr Hugh Dalton , Bishop Auckland

If my hon. Friend will look up Command Paper No. 6750 of March, 1946, the whole matter is there set out very fully. What we have aimed to do, and what the House accepted at the time as a reasonable thing to do, was to try to bring the soldier into the same general position as the civilian with regard to both standard payments and Income Tax liability. This is one instance of that.

Vice-Admiral Taylor:

Will the right hon. Gentleman say whether civil servants have to pay Income Tax on their lodging allowance?

Photo of Mr Hugh Dalton Mr Hugh Dalton , Bishop Auckland

I will certainly look into that.

Vice-Admiral Taylor:

If the soldiers are worse treated——

Photo of Mr Hugh Dalton Mr Hugh Dalton , Bishop Auckland

If the hon. and gallant Gentleman will put down a Question, I will give him the answer.

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