§ SIR WILLIAM BULLI beg to ask Mr. Chancellor of the Exchequer under what section of the Act the Board of Inland Revenue refuse to refund income tax to British subjects resident abroad upon interest of Colonial and foreign Government securities, on the ground that these are assessed under Schedule C and not under Schedule D, as are dividends of other foreign securities, this notwithstanding the 188th section of 5 and 6 Victoria, cap. 35.
§ MR. ASQUITHUnder Schedule D., liability, in respect of income arising out of the United Kingdom, is only incurred by residents within the United Kingdom, and therefore the interest on foreign and Colonial securities chargeable under that schedule is not liable to duty when received by any person resident outside the United Kingdom, although the payment may be actually made within the United Kingdom. Under Schedule C, income tax is chargeable in respect of all Colonial and foreign Government securities, the interest of which is payable in the United Kingdom. By administrative Treasury concessions of very long standing, exceptions from the charge under Schedule C are made in favour of:—(a) Foreign and Colonial securities owned by foreigners resident abroad; (b) Colonial stock owned by inhabitants of the colony contracting the loan. Section 188 of the Act of 1842 has no application to the point raised by the Question.
§ SIR WILLIAM BULLI beg to ask Mr. Chancellor of the Exchequer whether there is a Treasury Minute granting to foreign subjects resident abroad relief from income-tax upon foreign and Colonial securities, the dividends of Which are payable in the United Kingdom, relief which is refused by the Inland Revenue to British subjects residing abroad; and, if so, whether he will cause a copy of such Treasury Minute to be laid on the Table.
§ MR. ASQUITHThe authorities under which the Board of Inland Revenue act are Treasury Letters dated 7th 1562 October, 1842, and 5th August, 1856, copies of which I have laid on the Table.