Income Tax on Foreign Bonds.

HC Deb 15 June 1903 vol 123 cc946-7

MR. ROSE

I beg to ask Mr. Chancellor of the Exchequer if he can state the system adopted for the collection of Income Tax on foreign bonds to bearer held in England, the interest on which is payable abroad.

*THE CHANCELLOR OF THE EXCHEQUER (Mr. RITCHIE,) Croydon

The Income Tax on foreign bonds to bearer, the interest of which is paid abroad, is for the most part collected under the provisions of the Act 48 and 49 Vict., Chap. 51, Section 26, which prescribes that a banker or other person who obtains payment of the coupons shall deduct Income Tax from the proceeds, and account therefore to the Special Commissioners of Income Tax. In cases where the owner of the bonds obtains payment of his coupons direct from abroad, he would be liable to include the proceeds in his return for direct assessment under Schedule D.