HC Deb 26 March 1907 vol 171 cc1645-6
MR. VIVIAN

I beg to ask Mr. Chancellor of the Exchequer whether he is aware that people holding securities on money borrowed from banks have, in some cases, to pay both the tax on their own income and also on the interest paid to the banks, on which the banks also pay the tax, the Exchequer therefore receiving it twice over; will he in such cases see that repayment is made so that income-tax is only paid on the owner's true income as intended by the 1890 Act; and will he take into consideration so amending the Law that there shall be no uncertainty on the point.

MR. ASQUITH

The result indicated in the Question may arise, but, as far as possible, the Board of Inland Revenue endeavour to meet such cases by allowing repayment of tax on the interest paid to banks by borrowers, whenever the circumstances admit of it, and any case of hardship, if brought before them, is always carefully considered. I fear that such difficulties can hardly be altogether avoided under the system of tax by deduction, and an amendment of the Law to meet all cases would be extremely difficult to frame.