§ Mr. Foulkesasked the Chancellor of the Exchequer if he will list in the Official Report the relation of pensions to taxation in the other European Economic Community countries, Canada and the United States of America, including whether retirement pensions are taxable, whether an earnings rule operates, whether there is an age allowance and whether single, widowed or divorced women over pensionable age have to pay tax on the retirement pension itself.
§ Mr. Ridley[pursuant to his reply, 5 July 1982, c. 5]: The information requested on taxation is given in the following table: 239W
Whether retirement pensions are taxable Whether there is an age allowance Whether tax is payable on retirement pensions by single, widowed or divorced women Belgium yes yes yes Denmark yes yes yes France yes yes yes Germany yes yes yes Greece yes no yes Ireland yes yes yes No, but see Italy yes Note 1 yes No, but see Luxembourg yes Note 2 yes Netherlands yes yes yes Canada yes yes yes USA no yes no Notes 1. In Italy special relief is given on pension income.
2. In Luxembourg a single person over 65 is taxed in the same way as a married couple; that is, the tax rate scale is applied to one half of the taxable income and the resulting tax is doubled.
Information about the provision in member States of the European Community of retirement pensions including, where known, details of earnings rules or similar conditions, is contained in the DHSS publication "Social Benefit Tables in Member States of the European Community: position at 1 January 1981". A copy is available in the Library.
Available information indicates that there is no equivalent of the earnings rule in Canada. In the USA retirement pensions for those under 72 years of age are reduced to take account of earnings in excess of a prescribed amount.