§ Mr. Sainsbury
asked the Chancellor of the Exchequer whether he will seek to extend the provisions of Section 22 of 126W the Finance Act 1961, exemption from tax of compensation for National Socialist persecution, to exempt from tax comparable annuities paid under the law of the Austrian Republic.
§ Mr. Robert Sheldon
Section 377 of the Income and Corporation Taxes Act 1970—formerly Section 22 of the Finance Act 1961—extends only to those compensation annuities paid by the Federal Republic of Germany to victims of National-Socialist persecution which were computed on the basis that they would be free of German and foreign tax. So far as I am aware, no comparable annuities are paid by the Austrian Republic.
One-half of pensions paid by the Austrian Government to victims of National-Socialist persecution is exempt from United Kingdom tax—and has been since 1974—in the same way as similar pensions paid by the Federal Republic of Germany which are not wholly exempted under Section 377. I have no plans for increasing the amount exempted.