Annuities (Income Tax)

Oral Answers to Questions — National Finance – in the House of Commons on 15th October 1942.

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Sir Leonard Lylte:

asked the Chancellor of the Exchequer whether, in connection with his plans for the Budget of 1943, he will carefully examine existing legislation in America and the Dominions whereby some concession is given in income tax to those who depend upon small annuities to maintain them in their old age?

Photo of Sir Kingsley Wood Sir Kingsley Wood , Woolwich West

As I stated in reply to a Question put by the hon. Member for Kidderminster (Sir J. Wardlaw-Milne) on 24th March, I cannot see my way at the present time to introduce legislation with regard to the taxation of annuities. I may remind my hon. Friend that the investment income of persons of over 65 years of age with total income not exceeding £500 enjoys the same relief as is allowed in respect of earned income.

Photo of Sir Charles Lyle Sir Charles Lyle , Bournemouth

Is it not very unfair on these small annuitants that on the portion of their annuity which represents capital they have to pay full Income Tax, and is it not a fact that in America and Australia that is taken into consideration?

Photo of Sir Kingsley Wood Sir Kingsley Wood , Woolwich West

My hon. Friend knows my difficulties in regard to the remission of taxation.