§ 39. Mr. GODFREY LOCKER-LAMPSONasked the Financial Secretary to the Treasury whether he can estimate the cost to the Exchequer if the limit of two-thirds imposed by Section 101 of the Income Tax Act, 1842, in respect of rent or annual value to be allowed in calculating the liability to Income Tax (Schedule D) were extended so that the only amount disallowed was the value of the residential portion valued as a residence?
§ Mr. MONTAGUThe residential portions of premises used partly for the purpose of a business or profession not being separately assessed, I regret I have no data on which to furnish the estimate desired by the hon. Member.
§ 40. Mr. G. LOCKER-LAMPSONasked the Financial Secretary to the Treasury 818 whether the Treasury have received any representations from charities with respect to their present position under the Income Tax law, whereby they have to pay Income Tax on their property merely because they happen to occupy it instead of letting it to other persons; and, if so, whether he proposes to take any action in the matter?
§ Mr. MONTAGURepresentations have been received on behalf of one or two institutions, but I fear that I cannot see my way to take any action in the matter.
§ 78. Sir J. D. REESasked the Chancellor of the Exchequer whether the income derived by British subjects from investments in India and the Colonies, which is not remitted to the United Kingdom but left in India and the Colonies, is liable to taxation under Clause 5 of the Finance Bill?
§ The CHANCELLOR Of the EXCHEQUER (Mr. Lloyd George)The answer is in the affirmative in the case of a British subject ordinarily resident in the United Kingdom.
§ Sir J. D. REESDoes the right hon. Gentleman realise that the effect of the payment of the large sums in this way is to deprive the Colonies or India—as the case may be—of the money?
§ 79. Sir J. D. REESasked whether under Clause 5 of the Finance Bill a merchant resident in the United Kingdom and receiving income from investments in British Colonies and possessions is liable to Income Tax if he is, and exempt from Income Tax if he is not, a British subject?
§ Mr. LLOYD GEORGEUnder Clause 5 of the Finance Bill a merchant resident in the United Kingdom who is not a British subject will not be liable to taxation of income arising from foreign investments, not remitted to this country, but he remains liable under the Act of 1842 to taxation on remittances received here.
§ Sir J. D. REESAre these answers in accordance with the replies made on the same subject to my hon. Friend behind me a day or two ago?
§ Mr. LLOYD GEORGEThat was a totally different subject.
§ 81. Mr. G. LOCKER-LAMPSONasked how many charities there are at the present time which have to pay Income Tax on their property merely because they happen to occupy it instead of letting it to other persons?
§ Mr. LLOYD GEORGEI have, I regret, no means of obtaining the information asked for.
§ 82. Mr. G. LOCKER-LAMPSONasked the Chancellor of the Exchequer what arrangements will be made for repayment of the excess Income Tax in cases where stocks and shares have been bought cum dividend and where the purchaser has received the dividend through his broker, less 1s. 4d. in the £, and the Income Tax voucher is not available?
§ Mr. LLOYD GEORGEA circular letter has now been issued by the Board of Inland Revenue dealing with the question of adjustments in the case of tax already deducted at the rate of 1s. 4d. in the £, and, if difficulty is experienced in applying the instructions to any individual case, the Board will be glad to advise on being placed in possession of the necessary facts.
§ 83. Mr. FELLasked the Chancellor of the Exchequer if the Treasury is only interested in the Income Tax on the profits of companies and not in the dividends paid to the shareholders; and if such companies may deduct Income Tax at the new rate of 1s. 3d. in the £ on dividends paid to the shareholders without any reference to the Treasury or to the Income Tax authorities?
§ Mr. LLOYD GEORGEIn the case of British companies the dividends are paid out of profits and gains charged to Income Tax by direct assessment on the companies, and the question of the rate at which tax is deducted on payment of the dividends is therefore one for settlement between the companies and their shareholders.
§ Mr. FELLIn the present circumstances could not companies in paying their dividends deduct the tax at 1s. 3d., and so save all the trouble that might arise?
§ Mr. LLOYD GEORGEI should like to have that question put down.
§ 84. Mr. G. LOCKER-LAMPSONasked the Chancellor of the Exchequer whether there will be any opportunity of discussing the present anomalous position of charities under the Income Tax law before the Committee stage of the Finance Bill is passed?
§ Mr. LLOYD GEORGEThe question whether it will be possible to discuss any particular Amendment or new Clause on the Committee stage of the Finance Bill must necessarily depend upon the amount 820 of time which hon. Members think necessary to devote to other subjects.
§ Mr. G. LOCKER-LAMPSONIf there is no opportunity of discussing the matter on the Committee stage, will the right hon. Gentleman give us the chance of discussing it on Report?
§ Mr. LLOYD GEORGEAs new Clauses come first, I should say that there would very probably be a very good chance of discussion.