§ In addition to the reliefs granted under Section thirty-two of the Finance Act, 1918, in respect of premiums paid on an insurance policy an allowance shall also be made in respect of premiums paid on policies to secure a deferred annuity whether such policies have been effected before or after 457 the passing of this Act, provided always that no such allowance shall in any case exceed such a sum as represents the earned income allowance granted to the taxpayer.—[Sir H. Buckingham.]
§ Brought up, and read the First time.
§ Sir H. BUCKINGHAMI beg to move, "That the Clause be read a Second time."
This is a Clause of considerable importance, and it would be unreasonable to ask the Chancellor of the Exchequer for a definite promise to carry it through to-night. In the first place, it is impossible to say what the cost of my proposal would be. I would remind the Chancellor of the Exchequer that this Clause is the outcome of correspondence I have had with him on account of a large class of people whose only asset is their intellectual capacities, and who have no opportunity of building up a business goodwill. The suggestion is that for these people it would be only right that they should get the benefit of allowances upon any premiums which they pay in respect of deferred annuities. The same scheme has been put before the Minister of Health, as -it appeared to me that this might possibly be a method of filling the gap to which the right hon. Gentleman referred in introducing the Pensions Bill where people cannot acquire pensions under the new scheme in consequence of not being subscribers to the National Health Insurance. I should be satisfied if the Chancellor of the Exchequer will give me an assurance that this matter will receive due consideration.
§ Sir JOHN MARRIOTTI would appeal to the Chancellor of the Exchequer to give consideration to this matter, which is of very great public interest, between now and the Report stage.
§ Mr. CHURCHILLI am not in a position to make this concession at the present time. The situation is what it was a year ago. The facilities for obtaining remissions in regard to insurance policies have been restricted by Parliament because it was found that they were being to some extent abused and the revenue was being exposed to considerable loss. I should like this matter to be considered in relation to changes made by this Budget put forward to help the professional man of small means, and even 458 the big professional man who desires to build up an insurance policy, out of his income, for his wife and children in the event of his death. That has been the strength of the case of my two hon. Friends who support this Clause. The whole aspect of this Budget is to give concessions in favour of those men. The discrimination in favour of earned income as against invested income and the discrimination in favour of Super-tax as against Death Duties on estates passing at death tend to mitigate the position. While I promise to consider the question raised by the Clause, I cannot promise to deal with it in the present state of affairs.
§ Sir H. BUCKINGHAMI beg leave to withdraw the Clause.
§ Motion and Clause, by leave, withdrawn.
§ 12 M.
§ Colonel Sir GEORGE COURTHOPEIn view of the New Clause promised by the Chancellor of the Exchequer in reference to the exemption of agricultural property, I do not propose to take up the time of the Committee by moving the Clause which I have put on the Paper— (Amendment as to value of property for purposes of estate duty).
The CHAIRMANDoes that apply to the other Clauses which stand on the Paper in the name of the hon. Baronet?
§ Sir G. COURTHOPEYes.
The CHAIRMANWith regard to the Clause in the name of the hon. Member for Inverness (Sir M. Macdonald)— (Exemption of agricultural shows from entertainments duty in certain cases)—I understand that in order to carry out the agreement that has been arrived at with the hon. Member and his friends, I am not to call it now, and that a fresh Clause is to be put down which will come up to-morrow.