HC Deb 07 May 1901 vol 93 cc940-1

I beg to ask Mr. Chancellor of the Exchequer whether local authorities are justified, under Section 24, Sub-section 3, of the Customs and Inland Revenue Act, 1888, in deducting income tax at 1s. 2d. in the £ on half-yearly payments of interest made after the 5th April, 1901, but covering a period antecedent to that date when the payment is charged solely on, and made out of, funds liable to income tax, such as gas undertakings or waterworks.


It is very difficult to answer a question of this kind without knowing the particular case referred to. But, so far as I understand, in the circumstances described the income tax should not be deducted at the rate of 1s. 2d. for the whole of the period covered by the payment of interest, but at the rate of 1s. in the £ in respect of any portion of the payment which accrued in the year ended on the 5th April, 1901, and at the rate of 1s. 2d. in the £ in respect of any portion accruing subsequent to that date.