HC Deb 01 August 1944 vol 402 cc1162-3
51. Sir John Mellor

asked the Chancellor of the Exchequer if he will give an assurance that, when premiums paid by a company to insure the life of a director or employee have not been treated by the Inland Revenue as admissible deductions, any sum received by the company under the policy will be treated as a capital receipt.

Sir J. Anderson

I am advised that it may be taken as a general rule that if the premiums are not admissible deductions the policy moneys do not constitute trading receipts. For technical reasons, however, it is not possible to give an assurance, as suggested by my hon. Friend, which would cover every type of case.

Sir J. Mellor

Surely in no case does my right hon. Friend think it proper that the Inland Revenue should score both ways?

Sir J. Anderson

I covered that point in my answer. It is not a question of what the Inland Revenue think, or even what the Chancellor thinks. It is a question of what the law provides. I think if my hon. Friend will look at my answer, and if he would then like to have a word with me, I should be able to explain the position to him.