INCOME TAX—INSURERS IN AMERICAN COMPANIES.

HC Deb 13 March 1891 vol 351 cc920-1

MR. THEODORE FRY (Darlington)

I beg to ask the Chancellor of the Exchequer if he will now take steps to allow a rebate of Income Tax to insurers in American companies doing business in this country; and, if not, on what ground he justifies this difference of treatment amongst British taxpayers on whom alone the loss falls?

THE CHANCELLOR OF THE EXCHEQUER (Mr. GOSCHEN,) St. George's, Hanover Square

The question whether persons who insure in American companies can claim rebate of Income Tax on their premiums has been authoritatively settled by the Courts, and I am not prepared to propose any alteration in the law. The difference of treatment of British and of American Insurance Companies does not rest on merely technical grounds. Persons who insure in British companies are advantaged by rebate of Income Tax on their premiums, but the companies themselves pay Income Tax on their investments. Foreign companies who hold investments abroad are advantaged by having no Income Tax to pay on their investments, and there is therefore no claim for remission of the tax on the premiums paid.