HC Deb 08 June 1932 vol 266 cc2073-4

Section thirty-two of the Income Tax Act, 1918 (which provides for relief from tax in respect of life insurance premiums, etc.), shall be extended so as to apply to insurances made and annuities contracted for with underwriters, being members of Lloyd's or of any other association of underwriters approved by the Board of Trade, who comply with the requirements set forth in the Eighth Schedule to the Insurance Companies Act, 1909), as that Section applies to insurances made and annuities contracted for with such an insurance company as is mentioned therein.—[Sir A. Steel-Maitland.]

Brought up, and read the First time.

Sir ARTHUR STEEL-MAITLAND

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

The object of the Clause is quite simple. Relief from Income Tax is already given in respect of some premiums on life assurance policies taken out by a man either on his own life or on that of his wife. At present this relief is only given in respect of policies taken out with insurance companies established in the United Kingdom or in the British Dominions and registered friendly societies. There is a growing practice to effect life assurance policies with underwriters, and the object of this Clause is to extend, as can quite properly be done, this relief from Income Tax to life assurance policies taken out with underwriters at Lloyd's and other underwriters approved by the Board of Trade. I think the interests both of the Revenue and of the insurers are well safeguarded by the last lines in the Clause which enact that the underwriters should be members of Lloyd's or other association of underwriters approved by the Board of Trade and the reference to the Eighth Schedule of the Insurance Companies Act means that the underwriters with whom such policies are taken out have deposited sufficient sums to form a proper guarantee and that those sums are invested in accordance with rules approved by the Board of Trade.

Major ELLIOT

My right hon. Friend's proposal seems a most reasonable one, and I accept it.

Clause added to the Bill.