§ Sir FREDERICK BANBURYasked the Chancellor of the Exchequer from what date the increased Income Tax would become payable; whether he was aware that some bankers were deducting Income Tax at the rate of 1s. 2d. in the pound on dividends accruing from 1st November last and due on 1st May; and whether, in that case, they should have deducted Income Tax at the increased rate for one month only, and not for the whole six?
§ Mr. LLOYD-GEORGEThe increased rate of Income Tax is applicable for the year beginning on 6th April last. If the dividends referred to are dividends on foreign or Colonial securities the deduction at 1s. 2d. in the pound was correct.
§ Sir FREDERICK BANBURYIs it right to deduct Income Tax at the rate of 1s. 2d. in the pound on dividends which accrued five months before 5th April?
§ Mr. LLOYD-GEORGEI am only following the usual practice, but if there is any reason for a departure I shall be quite willing to consider it.
§ Sir F. BANBURYWill the right hon. Gentleman consider the question if I raise it at a future time?
§ Mr. LLOYD-GEORGEI will always very carefully consider any representations made by the hon. Baronet.
§ Mr. J. F. CHEETHAMDoes the same practice apply to dividends on Indian railway stocks?
§ Mr. LLOYD-GEORGEI assume that the practice is the same; the same principle seems to apply.