§ 52. Sir W. DAVISONasked the Chancellor of the Exchequer whether, in view of the serious drain on the capital resources of the country by reason of the capital levies made by Death Duties, he 1609 will consider the desirability of encouraging taxpayers to take out insurance by means of an annual payment out of income to meet the estimated amount of the duty payable out of capital on their death by providing that the amount of such insurance, not exceeding the amount of duty, shall not be taken into consideration in the valuation of the estate for Death Duties?
§ The FINANCIAL SECRETARY to the TREASURY (Mr. Hore-Belisha)This matter is one with which, I hope my hon. Friend will admit, it is impossible to deal adequately within the limits of a Parliamentary answer. As my hon. Friend knows, his suggestion has been considered by this House on many occasions, but, apart from objections on principle, the cost to the Exchequer has always made it impossible for it to be accepted.
Sir W. DAVISON: Does my hon. Friend not recognise the unfairness, when a man insures for a sum of money in order to pay his Death Duties, that that sum should be added to his estate, and that he has to pay Death Duties thereon? Is not that obviously unfair, and is it not desirable that the State should get rid of this continuous capital levy, which is not in the national interest?
Mr. HORE-BELISHA: My hon. Friend will see that his proposal would give a preference to a particular kind of saving, but, as I tell him, it is not possible to debate the matter by question and answer.