§ MR. T. M. HEALY (Louth, N.)To ask Mr. Chancellor of the Exchequer if he will state why the 10th Section of the Finance Act, 1907, is limited to the case of loan capital, in view of the fact that the grievance which the section was intended to meet also exists in cases where share capital is consolidated, as for example where an issue of preference stock is made by a railway company for the purpose of consolidating several existing preference stocks; and whether he will apply the provisions of Section 10 to such cases.
(Answered by Mr. Lloyd-George.) Section 10 of the Finance Act, 1907, is limited to loan capital because the grievance which the section was intended to meet only exists in cases of loan capital 1435 A company making an issue of preference stock for the purpose of consolidating existing preference stocks would not necessarily pay any share capital duty. Such duty would, under the law as it stands, only be payable in respect of any authority to increase the nominal share capital of the company. A consolidation effected without increase of the nominal share capital would not attract duty. A consolidation of loan capital under similar circumstances would, but for Section 10 of the Finance Act, 1907, attract 2s. 6d. per cent.