HC Deb 13 March 1888 vol 323 c1079
SIR JOHN LUBBOCK (London University)

asked Mr. Chancellor of the Exchequer, Whether the bonus to be given to the holders of Consols and Reduced who accept the new Stock should be treated as capital or interest?

THE CHANCELLOR OF THE EXCHEQUER (Mr. GOSCHEN) (St. George's, Hanover Square)

There is a good deal to be said on both sides, both for treating this 5s. as capital and also for treating it as income; but the Government have received such numerous representations, mainly from Trustees, explaining the great inconvenience there would be if there were any doubt about the matter, and in investing such very small sums as 5s. per £100 would occasionally amount to, that they have decided to introduce a clause in Committee authorizing Trustees to treat the 5s. bonus on Consols and Reduced Threes as income.