HC Deb 06 July 1971 vol 820 cc1284-6

Amendments made: No. 96, in page 60, line 16, leave out from beginning to except' in line 42 and insert:

Contracts for dependants or life insurance

'226A.—(1) The Board may approve under this section—

  1. (a) a contract the main object of which is the provision of an annuity for the wife or husband of the individual, or for any one or more dependants of the individual,
  2. (b) a contract the sole object of which is the provision of a lump sum on the death of the individual before he attains the age of 70, being a lump sum payable to his personal representatives.

(2) The Board shall not approve the contract unless it appears to them that it is made by the individual with a person lawfully carrying on in the United Kingdom the business of granting annuities on human life.

(3) The Board shall not approve a contract under subsection (1)(a) above unless it appears to them to satisfy all the following conditions, that is—

  1. (a) that any annuity payable to the wife or husband or dependant of the individual commences on the death of the individual,
  2. (b) that any annuity payable to the individual commences at a time after the individual attains the age of 60, and, unless the individual's annuity is one to commence on the death of a person to whom an annuity would be payable under the contract if that person survived the individual, can not commence after the time when the individual attains the age of 70,
  3. (c) that the contract does not provide for the payment by the person contracting with the individual of any sum, other than any annuity payable to the individual's wife or husband or dependant, or to the individual'.

No. 97, in page 61, line 10, leave out widow's annuity contract' and insert 'contract under subsection (1)(a) above'.

No. 98, in line 13, leave out '(2)' and insert '(3)'.

No. 99, in line 15, leave out 'widow's annuity contract' and insert 'contract under this section'.

No. 100, in line 18, leave out 'widows of the individuals' and insert: 'wives, husbands and dependants of the individuals, or lump sums payable to the individuals' personal representatives on death'.

No. 101, in line 26, leave out 'an approved widow's annuity contract' and insert: 'a contract approved under this section'.

No. 102, in line 43, leave out 'widow's annuity contract)' and insert: 'contract approved under section 226A of this Act)'.

No. 103, in page 62, line 12, leave out 'widow's contract' and insert: 'contract approved under section 226A of this Act'. and No. 104, to leave out lines 19 to 21 and insert: In this subsection 'individual's contract' means an approved annuity contract other than one approved under section 226A of this Act.—[Mr. Patrick Jenkin.]

Mr. Patrick Jenkin

I beg to move Amendment No. 105, in page 63, line 10, at end insert:

Persons born before 1916

5. For section 228(4) of the Taxes Act substitute:— '(4) Subject to subsection (5) below, in the case of an individual born at a time specified in the first column of the Table set out below, section 227(1 A) and (1C) of this Act, and subsections (1) and (2) above, shall have effect with the substitution for references to £1,500 and to 15 per cent. of references respectively to such sum and such percentage as are specified for his case in the second and third columns of the Table.

Year of Birth Sum Percentage
1914 or 1915 £1,600 16
1912 or 1913 £1,700 17
1910 or 1911 £1,800 18
1908 or 1909 £1,900 19
1907 or any earlier year £2,000 20'

Amendment to Chapter III of Part XIV of Taxes Act (charges in respect of life policies)

6. In section 393 of the Taxes Act after subsection (2) insert— '(2A) Nothing in this Chapter shall apply to a policy of insurance which constitutes, or is evidence of, a contract for the time being approved under section 226A of this Act'.

The Amendment does two separate things. Paragraph 5, which it seeks to insert in the Schedule, meets the undertaking which I gave to my hon. Friend the Member for Surrey, East (Mr. William Clark) to make additional provision for those who were born before 1916 analogous, though not on the same basis, to that provision made in the 1956 Act. We accepted the case that those who have a shorter time to build up adequate retirement benefits should be entitled lo pay premiums of a higher percentage and up to a higher ceiling. The table set out in paragraph 5 is written into the Schedule by the Amendment. I hope that it will commend itself to the House.

Paragraph 6 makes it clear that any policy of insurance taken out which is a retirement scheme is not to be covered by the general law which applies to insurance policies—the 10-year rule, and so on. It is obviously to make it clear that these are two different systems and that the rules are mutually exclusive.

Amendment agreed to.

Amendment made: No. 106, in page 63, line 21, to leave out sub-paragraph (4).—[Mr. Patrick Jenkin.]

Forward to