HC Deb 27 November 1928 vol 223 cc262-3W

asked the Chancellor of the Exchequer whether he is aware that private annuities exceeding £25, partly contributed by the employer and partly by the employé, payable to the widows of employés are chargeable with Estate Duty under the Finance Act, 1894. Section 2, whereas such pensions, to which voluntary contributors or insured persons have subscribed, payable under the Widows', Orphans', and Old Age Contributory Pensions Act, 1925, are exempt; and whether he is prepared to take the necessary steps to remove the hardship thus incurred by such widows in the payment of such duty.


The reply to the first part of the question is in the affirmative. It has always been held that there is a clear distinction between an annuity payable on the death of an employé consequent upon a private arrangement made by him and his employer and an annuity payable upon the death of a deceased person under a statute of general application; and I am not in a position to introduce legislation with the object of assimilating the position as regards liability to Estate Duty.