13 AUGUST 1932, Page 16

DEATH DUTIES AND LIFE ASSURANCE [To the Editcr of the

SPECTATOR.]

Sm,—The argument in your Insurance Supplement for ex. eluding death duty insurances from the values of estates prompts me to make a proposal which might be accepted more easily and which justice requires. Rebate of income tax is not given upon that portion of a life insurance premium which exceeds 7 per cent. of the capital sum assured. When death duties are raised and elderly persons desire to increase their insurances, the premia exceed that 7 per cent. It seems both just and politic to give the rebate on the whole premium in such a case.—I am, Sir, &c.,