§ Sir A. Meyerasked the Chancellor of the Exchequer if he is aware that elderly taxpayers whose income exceeds the limits for extra relief are subject to excessively high rates of taxation on that portion of their income which exceeds the limits and that this constitutes an undesirable penalisation of thrift; and whether he will take steps to mitigate the effect of this sharp incidence of tax on the elderly.
§ Mr. MacDermotThe marginal relief provisions for income which exceeds the age relief limits do not involve excessive rates of taxation. They operate only where they are to the benefit of the taxpayer, so as to reduce his liability below 195W what it would be if the ordinary tax reliefs and tax rates applied.
§ Sir A. Meyerasked the Chancellor of the Exchequer if he is aware that income from investment in building societies, although not included in tax assessments, is included for purposes of deciding limits of exemption for elderly taxpayers; and whether he will take steps to rectify this anomaly.
§ Mr. MacDermotI do not agree that there is an anomaly here. Building society interest is income and is properly taken into account in considering whether an elderly person's income exceeds the income limit for age exemption. The reasons why the interest is not assessed on the recipient is that the tax is paid by the society under special arrangements.