HC Deb 21 June 1921 vol 143 cc1280-1

The income of any fund formed for the purpose of providing superannuation for employés, where the employers' contributions to such fund are definitely alienated 60 as to belong to the fund absolutely, shall be entitled to exemption from tax under Schedules A, C, and D.

Provided that any superannuation allowance received by any person from such fund shall be regarded as income assessable for tax in the hands of the recipients.—[Mr. Leslie Scott.]

Brought up, and read the First time.

Mr. LESLIE SCOTT

I beg to move, "That the Clause be read a Second time."

This relates to a small point that I think will involve no sacrifice to the revenue, and it would certainly meet the views of a very large number of persons concerned in superannuation funds. The law at the present time is that employers subscribing to superannuation funds are allowed to deduct in practice the amount of their contributions from payments for Income Tax, and the same applies in the case of men who are subscribing to superannuation funds in cases where they have to pay Income Tax. But by a curious anomaly, the fund itself, if it Makes an income, is obliged to pay Income Tax on it. I have had very strong complaints, for instance, from various funds in Liverpool and elsewhere, and I would ask the Chancellor of the Exchequer if he can see his way to give sympathetic consideration to this suggestion between now and the Report stage, and inform me if he can see his way to accept something on the lines of my Clause, in order that it may be incorporated on the Report stage. My Clause is exactly in the words advised by the Royal commission on Income Tax.

Sir R. HORNE

I certainly undertake to do what my hon. and learned Friend suggests—namely, to give further consideration to this Clause between now and the Report stage and to inform him as to what I shall be able to do when that stage arrives. As matters stand at the present time, I could not agree to the Clause in its wide terms as here proposed. My information is that already most of what my hon. Friend desires is covered by the practice of the Inland Revenue Department. But in so far as there may be some hardship arising from some part of the fund being caught, I shall undertake to consider that before the Report stage.

Mr. L. SCOTT

I beg to ask leave to withdraw the Clause.

Motion and Clause, by leave, withdrawn.