HC Deb 15 October 1942 vol 383 cc1767-8
67. Sir Leonard Lylte

asked the Chancellor of the Exchequer whether, in connection with his plans for the Budget of 1943, he will carefully examine existing legislation in America and the Dominions whereby some concession is given in income tax to those who depend upon small annuities to maintain them in their old age?

Sir K. Wood

As I stated in reply to a Question put by the hon. Member for Kidderminster (Sir J. Wardlaw-Milne) on 24th March, I cannot see my way at the present time to introduce legislation with regard to the taxation of annuities. I may remind my hon. Friend that the investment income of persons of over 65 years of age with total income not exceeding £500 enjoys the same relief as is allowed in respect of earned income.

Sir L. Lyle

Is it not very unfair on these small annuitants that on the portion of their annuity which represents capital they have to pay full Income Tax, and is it not a fact that in America and Australia that is taken into consideration?

Sir K. Wood

My hon. Friend knows my difficulties in regard to the remission of taxation.