§ The exemption from Income Tax granted by the Income Tax Acts to a friendly society, and by the Trade Union (Provident Funds) Act, 1893, to a registered trade union, by the rules of which it appears that the sums assured to any person by the society or union do not exceed if by way of gross sum two hundred pounds, or if by way of an annuity thirty pounds a year, shall extend to any registered friendly society and to any registered trade union, if the society or union are restricted either by virtue of any Act of Parliament or by their rules from assuring to any person any sum exceeding three hundred pounds by way of gross sum or fifty-two pounds a year by way of annuity.
§ Question proposed, "That the Clause be now read a second time."
§ Mr. HOBHOUSE
Under an Act which I brought in last year to amend the Friendly Societies Act of 1896, the amounts which registered friendly societies and trade unions might give to their members was extended to £300 for assurance and £52 for annual benefit. The result of that extension was that the Income Tax exemption to friendly societies and trade unions no longer applied, and they became liable to the tax. The effect of this Clause will be to continue the exemption, which in the case of friendly societies is limited to £300 for assurance and £52 for annual benefit.
§ Clause added to the Bill.1523
§ Mr. HOBHOUSE moved, after Clause 70, to insert the following:—