SIR,—Although I am confident that Janus has no intention of
mis-stating facts deliberately, in his anxiety to unearth every point which might sup- port his argument that the Nelson Annuity should be terminated, he has again laid himself open to correction. It is true that the Act of 18o6 provided for the payment of this annuity free of all taxes, but this very point was considered by the Government in 1842, and the Finance Act of that year made the annuity subject to all taxes. The annuity has now been subject to income- and sur-tax for over too years, and at the present time the recipient is left with only about L2,000 after paying tax. I feel that this should be borne in mind when considering the statement made by the Chancellor of the Exchequer in the House recently that over £700,000 had been paid, as a large proportion of this sum has been retained by the Treasury in taxation.—I am, Sir, yours faithfully,
STEPHEN N. YOUNG.
Oxford and Cambridge University Club, Pall Mall, S.W. i.
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