Clause 1 - Amendment of the Income and Corporation Taxes Act 1988
Pension Annuities (Amendment) Bill
11:15 am
Mr Howard Flight (Arundel and South Downs, Conservative)
I thought that the Government as well as the Conservative party now upheld that principle. It is clear from what the Minister said, however, that the objection to people passing on money is at the root of the problem.
There is now an annuity scheme that provides what people actually want and is approved by the Revenue. However, it has very high charges and when the Treasury was wearing a different hat, it was keen to discourage people from being forced to buy expensive insurance wrapper products when they were unnecessary to the end objective.
The Minister's case does not stand up with regard to any of the key issues. The fundamental point, which has been difficult to get across, but which my right hon. Friend the Member for Skipton and Ripon has made clear, is that it is necessary for other legislation to accompany the Bill, to establish an appropriate exit tax and to ensure that no tax incentives are introduced by mistake.