HC Deb 07 July 1930 vol 241 cc167-8

Section thirty-two of the Finance Act, 1921, which grants exemption from income tax in respect of the income of certain superannuation funds shall have effect as if for paragraph (b) in sub-section (3) thereof there were substituted the following paragraph:— (b) The fund has for its sole purpose the provision of annuities for all or any of the following persons in the events, respectively, specified, that is to say, for persons employed in the trade or undertaking either on retirement at a specified age, or on becoming incapacitated at some earlier age, or for the widows, children, or dependants of persons who are or have been so employed on the death of those persons.—[Mr. Romeril.]

Brought up, and read the First time.

Mr. ROMERIL

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

This proposal has been before Parliament on a number of occasions, and I will not detain the Committee long about it. There are funds in existence for the purpose of providing pensions for the members of such funds. There are other funds that exist for the purpose of providing annuities and allowances for the widows, orphans and dependants of the members of the fund. The first class of funds enjoy exemption from income tax on their investments, the view taken being that a double income tax should not be charged. That exemption was not extended to funds of the second class, and this Clause proposes to grant such exemption. I do not think there is any dispute as to the identical character of the funds. As the principle of exemption has been accepted for the first class of funds, in justice and in equity it should apply to the other funds. I moved this new Clause in 1924, and the present Chancellor, while expressing his sympathy with it, said he was unable to grant the concession then but undertook to try to do so in the next Budget. I am exceedingly hopeful, therefore, that he will be able to do it tonight.

Mr. P. SNOWDEN

I am glad to be able to offer my hon. Friend something more than sympathy on this occasion. I am prepared to accept the Clause.

Clause added to the Bill.