Income Tax (State Retirement Pensions)

Oral Answers to Questions — National Finance – in the House of Commons at 12:00 am on 2nd December 1969.

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Photo of Mr Marcus Lipton Mr Marcus Lipton , Lambeth Brixton 12:00 am, 2nd December 1969

asked the Chancellor of the Exchequer what is his estimate of the cost of exempting State retirement pensions from income tax.

Photo of Mr Jack Diamond Mr Jack Diamond , Gloucester

About £150 million for a full year.

Photo of Mr Marcus Lipton Mr Marcus Lipton , Lambeth Brixton

While I do not want to anticipate the Chancellor's Budget State- ment, could my right hon. Friend give some consideration to the abolition of the earnings rule, or at least make some concession for the benefit of pensioners, who have already paid for their pensions?

Photo of Mr Jack Diamond Mr Jack Diamond , Gloucester

The earnings rule is a matter not for me but for my right hon. Friend the Secretary of State for Social Services.

Photo of Sir Brandon Rhys Williams Sir Brandon Rhys Williams , Kensington South

Would it not be better to make the contributions allowaable once again for tax purposes?

Photo of Mr Jack Diamond Mr Jack Diamond , Gloucester

The hon. Gentleman knows the history of this. He knows that there was a compounding of the allowance given at a particular time.