§ Mr. Scott-Hopkinsasked the Chancellor of the Exchequer at what rate National Insurance retirement pensions 130W are liable to tax with respect to earned and unearned incomes up to £2,000 per annum.
§ Mr. BarberNational Insurance retirement pensions are taxable as earned income of the pensioner. The amount of tax which any individual pays in respect of his pension depends on the amount of his total income and of the allowances and reliefs to which he is entitled. If, for example, he would be liable to Income Tax at the standard rate without his pension, the additional Income Tax attributable to the pension (regarded as the highest part of his income) would be tax at the standard rate on the amount of the pension as reduced by canned income relief.