§ 43. Sir William Davisonasked the Chancellor of the Exchequer whether he is aware of the hardship suffered by persons who have purchased annuities by reason of the fact that the annuitant has to pay Income Tax on the full amount of the annuity, although a large portion of it is represented by the return of the annuitant's capital; and will he consider the removal of this injustice in his forthcoming Budget.
§ The Chancellor of the Exchequer (Sir John Anderson)I am afraid that I cannot see my way to introduce legislation to alter the existing taxation of annuities.
§ Sir W. DavisonCan my right hon. Friend explain the justification for levying Income Tax on instalments of return 1571 capital; is he aware that annuitants are generally people of very small means who are very heavily hit in this way, and will he give the matter further consideration?
§ Sir J. AndersonI know the facts, and can only refer my hon. Friend and the House to the Report of the Royal Commission on Income Tax, which went into the matter in all its aspects very thoroughly indeed in 1920.