HC Deb 27 June 1939 vol 349 cc207-8
49. Mr. Tinker

asked the Chancellor of the Exchequer whether, in view of the fact that compulsory contributors under the Widows', Orphans' and Old Age Contributory Pensions Act are exempt from Income Tax, he will state on what ground the contributions of a voluntary contributor are not so exempt?

Sir J. Simon

Relief from Income Tax in respect of compulsory contributions under the Widows', Orphans' and Old Age Contributory Pensions Acts is allowed under provisions of the Income Tax law which authorise relief in respect of certain payments which a person is liable to make under an Act of Parliament for securing a pension for himself or for his widow or children. The condition of allowance of this relief is not satisfied in the case of a voluntary contributor, and there is no provision of the law under which relief can be allowed in respect of such a person's contributions.

Mr. Tinker

Is the right hon. Gentleman aware that life insurance premiums are subject to certain remissions of Income Tax? Surely, the humbler people are entitled to the same recognition?

Sir J. Simon

I do not think the distinction is between one class of persons and another.

Mr. Rhys Davies

Is it not the case that the voluntary contributor to the National Health Insurance scheme pays both the employer's contribution and his own, whereas the compulsorily insured person only pays his own contribution?

Mr. Tinker

Will the Chancellor consider the aspect of the matter that I have put to him in regard to life insurance premiums, and see if something cannot be done in these cases?

Sir J. Simon

I will gladly consider the point that the hon. Member has raised, but I think he will find, for reasons that are rather complicated, that really these voluntary contributions are a provision for a deferred annuity.