HC Deb 08 May 1952 vol 500 cc539-40
31. Mr. Lewis

asked the Chancellor of the Exchequer if he is aware that Members of Parliament are not allowed to claim Income Tax relief on their compulsory deductions of £1 per month as contribution for the Members Pension Fund; what is the reason for this; and whether he will amend the Income Tax Acts to enable Members of Parliament to claim this relief in a similar manner to all other contributors to superannuation funds.

The Financial Secretary to the Treasury (Mr. John Boyd-Carpenter)

The Departmental Committee on pensions for Members of the House of Commons, which recommended the setting up of this Fund in 1937, proposed that contributions should not qualify for any Income Tax relief, in order to ensure that there should be no charge, direct or indirect, upon public funds. The House approved these recommendations and the Select Committee on the Fund in 1947 did not suggest any change in this respect.

The amendment of the law suggested in the Question would result in the conferring on the contributors to this Fund of a tax privilege not available to funds of the same character operated by private employers for their staffs. The last part of the Question, therefore, does not arise.

Mr. Lewis

Is it not a fact that all contributors to superannuation funds are allowed to make a deduction for Income Tax purposes; and can the hon. Gentleman not see that this is a legitimate request, as it is the same as a local government superannuation scheme?

Mr. Boyd-Carpenter

The hon. Gentleman is confusing two kinds of superannuation fund, the one where the contributions entitle the contributor to a fixed and regular benefit, and the one of this kind where there is no right to any benefit at all. Outside superannuation funds operated in this manner do not carry immunity from tax.

Mr. Lewis

Surely that supports my case. If a Member has to contribute and is not entitled to gain any benefit, surely he is entitled to claim Income Tax rebate on his contributions?

Mr. Boyd-Carpenter

This is essentially a matter for the House, but so far as I am concerned I would not venture to recommend the House to confer on itself a privilege which it does not confer on its fellow citizens.