§ 22. Mr. Pounder
asked the Chancellor of the Exchequer if he will seek to exempt retirement pensioners from the payment of Income Tax on State retirement pensions; and if he will make a statement.
§ Mr. Pounder
Does not the Chief Secretary appreciate that although a tax allowance in respect of insurance contributions is given when a person is earning, nevertheless when the pension is paid the recipient is in a less good position to pay tax than when he was earning, and would he please look at the tax charge which arises on State retirement pensions?
§ Mr. Diamond
The simple position is that National Insurance pensions are regular income, and therefore I should have thought that the hon. Gentleman would have agreed with me that they are properly included in income for Income Tax purposes.