OVERSEA SUPERANNUATION BILL

Standing Committee B

OVERSEA SUPERANNUATION BILL

19th February 1991

PARLIAMENTARY DEBATES

HOUSE OF COMMONS

OFFICIAL REPORT

Standing Committee B

OVERSEA SUPERANNUATION BILL

Tuesday 19 February 1991

CONTENTS

Clauses 1 and 2 agreed to.

New clause considered.

Bill, as amended, to be reported.

Committee rose at twenty-eight minutes to Eleven o'clock.

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1 Standing Committee B Tuesday 19 February 1991

[MR. GERAINT HOWELLS in the Chair]

OVERSEA SUPERANNUATION BILL

10.30 am

The Chairman: Before I propose the Question that clause 1 stand part of the Bill, I remind the Committee that there is a money resolution, copies of which are available in the Room.

Clauses 1 and 2 ordered to stand part of the Bill.

NEW CLAUSE 1

Continuation of tax exemption for non-resident pensioners 'In section 615(2)(c) of the Income and Corporation Taxes Act 1988 (which provides that a pension paid out of the fund formed under the Oversea Superannuation Scheme is not liable to charge to income tax if it is income of a person who satisfies the Board that he is not resident in the United Kingdom) there shall be added at the end "or which would have been so paid had section 2(2)(e) and (4A) of the Overseas Pensions Act 1973 not been enacted;"—[Mrs. Chalker.]

Brought up, and read the First time.

The Minister for Overseas Development (Mrs. Lynda Chalker): I beg to move, that the clause be read a Second time. On a cross-check of the legislation, it was realised that the wording of section 615(2)(c) of the Income and Corporation Taxes Act 1988 would prevent four or five overseas residents from retaining United Kingdom income tax exemption on their basic pension. Those people live in countries such as Surinam and Brazil, with which we have no double taxation agreements. The new clause will ensure that when the assets of the fund are eventually paid to the Exchequer in exchange for an undertaking to pay the pensions out of current revenue, exemption from United Kingdom income tax will continue for those four or five pensioners.

Mr. Donald Anderson (Swansea, East): I congratulate the Minister on her diligence in discovering the point about section 615(2)(c) of the Income and Corporation Taxes Act 1988. I regret only that the substantial resources of the Opposition, who seek to do their job so well, did not discover it. Having worn sackcloth and ashes, we fully accept the purposes of the new clause.

Question put and agreed to.

Clause read a Second time, and added to the Bill.

Bill, as amended, to be reported.

Committee rose at twenty-eight minutes to Eleven o'clock.

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The Committee consisted of the following Members:

Chairman: Mr. Geraint Howells

Anderson, Mr. Donald (Swansea, East)

Ashby, Mr. David (Leicestershire, North-West)

Blaker, Sir Peter (Blackpool, South)

Bonsor, Sir Nicholas (Upminster)

Chalker, Mrs. Lynda (Minister for Overseas Development)

Emery, Sir Peter (Honiton)

Foulkes, Mr. George (Carrick, Cumnock and Doon Valley)

Galloway, Mr. George (Glasgow, Hillhead)

Gardiner, Sir George (Reigate)

Garrett, Mr. Ted (Wallsend)

Hamilton, Mr. Neil (Tatton)

Johnston, Sir Russell (Inverness, Nairn and Lochaber)

Litherland, Mr. Robert (Manchester, Central)

McFall, Mr. John (Dumbarton)

Miscampbell, Mr. Norman (Blackpool, North)

Mudd, Mr. David (Falmouth and Camborne)

Nicholson, Mr. David (Taunton)

Temple-Morris, Mr. Peter (Leominster)

Walker, Mr. N. P Committee Clerk

THE FOLLOWING MEMBERS ATTENDED THE COMMITTEE:

Howells, Mr. Geraint (Chairman)

Anderson, Mr.

Blaker, Sir Peter

Bonsor, Sir Nicholas

Chalker, Mrs.

Emery, Sir Peter

Foulkes, Mr.

Gardiner, Sir George

Garrett, Mr. Ted

Hamilton, Mr. Neil

Litherland, Mr.

Nicholson, Mr. David

Temple-Morris, Mr.

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