Mr. STANLEY WILSONasked the Chancellor of the Exchequer whether he is aware that a memorandum has been issued by the Board of Inland Revenue stating that Income Tax is deductible at the rate of 1s. 2d. in the pound from interest and annuities paid by municipal corporations or other local authorities to creditors on the rates for the six months ending 30th June last; and, if so, by what authority Income Tax is charged on the period prior to 31st March at a rate exceeding 1s. in the pound?
§ Mr. HOBHOUSEThe answer to the first part of the question is in the affirmative. As regards the second part of the question, Income Tax is deductible from the interest and annuities mentioned, at the rate in force at the time of payment, under the provisions of Section 24 (3) of the Customs and Inland Revenue Act of 1888.
§ Mr. ASHLEYHave the Board of Inland Revenue any right to differentiate between interest paid on municipal loans and dividends paid on ordinary companies?
§ Mr. HOBHOUSEIf the hon. Gentleman will refer to the section which I have mentioned, he will see that they have the right.