Retirement Pensions (Income Tax)

Oral Answers to Questions — National Finance – in the House of Commons at 12:00 am on 18th July 1967.

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Photo of Mr John Farr Mr John Farr , Harborough 12:00 am, 18th July 1967

asked the Chancellor of the Exchequer if he will take steps to exempt the forthcoming increases in the retirement age pension from Income Tax.

Photo of Mr John Farr Mr John Farr , Harborough

Would the hon. and learned Gentleman agree that it is very unfair that these small pension increases, which really replace the purchasing power of pensions eroded by the inflation, should have the little value which can be placed upon them further cut away by Income Tax?

Photo of Mr Niall MacDermot Mr Niall MacDermot , Derby North

These pensions are taxable in the same way as pensions generally. The general principle is to levy Income Tax from all sources. This matter has been considered under all Governments, and no reason has been seen for departing from that principle.