§ Lord Kilmarnockasked Her Majesty's Government:
In relation to the Lord Henley's reply of 30th November (HL Deb., col. WA38) and in view of Inland Revenue Occupational Pension Schemes Practice Notes paragraph 8.17 which states that full commutation does give rise to a tax charge, why such commutation for persons suffering from AIDS with short life expectancy would be inconsistent with the purpose of occupational pension scheme tax reliefs.
§ Lord HenleyTax reliefs are given to occupational pension schemes exclusively to encourage the provision of benefits on retirement and to dependants in the event of death. Accordingly, there are very strict limits on the extent to which such schemes can provide health or terminal illness cover.