§ 55. Mr. A. Edwardsasked the Chancellor of the Exchequer whether he proposes that in future social insurance benefits, old age pensions and children's allowances, are to be aggregated with the recipient's total income for Income Tax purposes.
§ Mr. PeakeThe broad principle which the Government have in mind regarding the treatment for Income Tax purposes of contributions and benefits under the National Insurance Scheme is, as my right hon. Friend indicated in his speech in the House on 3rd November, that contributions should be deducted and benefits should be included in computing the taxpayer's taxable income. I cannot at this stage add anything to that statement.
§ Mr. EdwardsWill the Minister bear in mind that when one purchases an annuity, a great part of it is treated as return of capital, and that only a small proportion is taxed?