EARL of RONALDSHAYasked whether a number of persons in this country who, by the exercise of thrift during their working years, have saved money out of their earnings and invested it in stock or annuities to provide for their old age, and that the Income Tax when payable on the income received from such sources is payable at the rate of 1s. 2d. in the £ as if the income was unearned; and whether, in view of the hardship thus caused, he would be willing, subject to a suitable limitation as to the amount of income derived from such source, to propose such amendments in the existing law as would permit of such income being assessed for Income Tax as earned income?
§ Mr. LLOYD-GEORGEThis suggestion was carefully examined when my right hon. Friend the Prime Minister introduced the differentiation between earned and unearned income for Income Tax purposes, and was then found to be impracticable. I have no objection, however, to giving it my full consideration.