§ 1. Mr. Hirstasked the Chancellor of the Exchequer if he has received representations recently from the Life Offices Association, and the Associated Scottish Life Offices, about the eligibility of life assurance policies for tax relief; and if he will make a statement.
§ The Chief Secretary to the Treasury (Mr. Peter Rees)Representations have been received on this question. The Government have been advised that eligibility for relief depends on whether an enforceable contract had been established before 14 March 1984.
§ Mr. HirstI am grateful to my right hon. and learned Friend for his reply. Is he aware that there is concern in a number of life offices at the attitude that the Inland Revenue appears to be taking in seeking to disallow tax relief on policies which had been transacted with life companies before the midnight deadline on 13 March 974 1984? Does he agree that much of that flurry of new business was occasioned by an unfortunate and improper leak by a Treasury official? Can he assure me that the Inland Revenue will adopt a trusting and fair approach towards tax relief on these policies?
§ Mr. ReesI understand the concern expressed by my hon. Friend, but it is not for me to speculate about the reasons for what he described as this "flurry of new business." The Inland Revenue is charged with the duty of enforcing the law as this House, with the upper House, enacts it, and is bound by the provisions of the last Finance Act. If there are cases where the facts may be a little in doubt and my hon. Friend feels that it would be helpful for the matter to be ventilated, no doubt he will write to me giving details.