§ The first point relates to the incidence of the new standard rate of 8s. 6d. in the £ on that part of the interest income of life insurance companies which is put aside for the benefit of policy holders. That income comes under charge generally at the full standard rate of Income Tax, and in the interests of the policy holders I feel it necessary to readjust the Income Tax chargeable so as to give some relief. Therefore, I propose to retain the standard rate at 7s. 6d. in the £ on the interest income of the Life Insurance Fund which is earmarked and set aside for the policy holder, and to obtain a recoup-ment for this concession by pegging the relief given to the policy holder in respect of his life insurance premiums at the rates obtaining last year, so that everyone this year will get relief on his premium on the same basis as he did last year—that is, generally speaking, at the rate of 3s. 6d. in the £. The gain to the Exchequer in restricting the relief on the life insurance premiums to what it was last year will make good the loss of tax which results from restricting the charge on the Life Fund to the standard rate of 7s. 6d. in the £. This is a somewhat complicated matter which will be more suitably discussed in detail when we come to the relevant Clause in the Finance Bill, but the proposal is one which will, I feel sure, commend itself to the Committee, for it is of the greatest importance that the incidence of the Income Tax should as far as possible be adjusted to secure the greatest advantage to the savings of the community as reflected in the Life Insurance Fund.