§ 8. Mr. NORMAN CRAIGasked the Chancellor of the Exchequer whether he is aware that many persons desiring to pro vide for their old age purchase annuities; that other persons to the same end insure; that in the case of annuities the whole capital is paid at the time of effecting the purchase, while in the case of insurances a partial and annual premium is paid; that if the transaction takes the form of the purchase of an annuity Income Tax is exacted, whilst exemption is given to the extent of partial premium payments; and whether he will take steps to get rid of this inconsistency and injustice?
§ Mr. LLOYD GEORGEThe concessions under the Income Tax Acts in respect of insurance policies are limited to annual premiums. They were made at a time when these Acts did not differentiate between earned and unearned incomes, and are less required now that this differentiation has been made. The reason for these concessions having now largely disappeared, I should not be prepared to contemplate any extension.