§ Sir RYLAND ADKINS(by Private Notice) asked the Chancellor of the Exchequer whether the additional Income ax of 2s. in the £ is chargeable in respect of dividends or interest on securities for the deposit of which theTreasury has asked under their recent Scheme B.
§ Mr. McKENNAThe additional charge of 2s. in the £ Income Tax is, as the law now stands, payable only in respect of securities which the Treasury offer to-purchase. The Treasury only desire to accept on deposit the Canadian and neutral Government securities included in Scheme B, and consequently these securities are not subject to the tax. It is urgently necessary in the national interest that a large number of these securities-should be placed at the disposal of the 2281 Treasury without delay, and I have such a confident hope that this appeal will meet such an immediate response from the holders of these securities as to make it unnecessary to ask Parliament to impose the additional Income Tax in respect of them.
§ Mr. HOUSTONDoes the right hon. Gentleman claim the right in case of need to sell these securities?
§ Mr. McKENNAUnder certain circumstances; but if they are sold, the present value plus 5 per cent, will be paid to the holders. I look upon the sale of securities as a very doubtful possibility.
§ Mr. SNOWDENThat is to say, the price paid for the securities will be the market price?
§ Mr. McKENNAPlus 5 per cent.