§ Mr. McCrindle
asked the Chancellor of the Exchequer for what reasons of policy pensions payments made under a permanent health insurance contract are regarded as investment income, whereas ordinary pension income from an occupational fund is treated as earned income; and if he will seek to amend the law so as to treat the first class of pension payments as earned income.
§ Mr. Peter Rees
[pursuant to his reply, 7 November 1979, c. 182]: These payments are treated as investment income because, unlike occupational pensions, they do not come within the definition of earned income in the Taxes Act. I have noted my hon. Friend's suggestion that their treatment should be changed.