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Widows' Pensions

Volume 983: debated on Thursday 24 April 1980

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asked the Chancellor of the Exchequer if he will seek to introduce proposals to remove the anomalies in the taxation of widows' pensions.

The new allowance which my right hon. and learned Friend proposed in his Budget will reduce the burden of tax on widows in the year of bereavement. We are taking full account of the rise in prices in raising the level of widows' pensions this year, but I do not regard as anomalous the fact that, like retirement pensions, they are treated as income for tax purposes.