§ Mr. MorganTo ask the Chancellor of the Exchequer under what conditions and at what rate he expects to initiate the taxation of invalidity benefit; if he proposes at the same time to review the taxation liability of the invalidity benefit supplement to the retirement pension; and if he will make a statement.
§ Mr. Maude[holding answer 21 February 1992]: It remains the Government's intention to bring invalidity benefit into taxation when operationally possible. When taxation is introduced the benefit will form part of the recipient's taxable income and will therefore be taxed at the taxpayer's marginal rate. The Government have no intention of changing the tax treatment of the addition to retirement pension given to those previously entitled to the invalidity allowance.