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Life Assurance Premiums (Tax Relief)

Volume 979: debated on Tuesday 19 February 1980

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asked the Chancellor of the Exchequer what would be the revenue effect in 1980–81 of removing the tax concessions available to holders of life assurance policies.

[pursuant to his reply, 14 February 1980]: It is not the practice to give estimates for 1980–81 in advance of the Budget Statement.

The national insurance rates used are at the not contracted out rate.

For comparison with other recent questions, family allowance and child benefit have been included in income where appropriate.

asked the Chancellor of the Exchequer if he will present the combined amount paid in tax and national insurance contributions as a and national insurance contributions as a percentage of averge earnings for a single person, a married couple, a married couple with children under 11 years, and four children, two under and two over 11 years, in 1949–50, 1959–60, 1969–70 and the latest available.

[pursuant to his reply, 14 February 1980]: The figures are as follows:Relief from tax on life assurance premiums is estimated at about £430 million in 1979–80.In addition, proceeds of life assurance policies are not normally liable to capital gains tax. Precise estimates of the value of this relief are not available, but the value of any relief which could only be obtained by virtue of the nature of the proceeds is likely to be of the order of £50 million.