§ Mr. Rooker
asked the Chancellor of the Exchequer if retirement pensioners liable to income tax due to pension increases in November are required to pay the increased income tax before the pension increase is actually received or whether the annual tax due is collected between the date of the increase and the end of the tax year.
§ Mr. Lawson
[pursuant to his reply, 9 April 1981, c. 313.]: Pensioners who have another source of income subject to deduction of tax under PAYE are given an amended code number at the time of the pension increase which has the effect of collecting the additional tax between the date of the increase and the end of the tax year. Those whose tax is collected directly by instalments pay the tax on a pension increase in those instalments which remain to be paid after the date of the increase.