§ Mr. McKENNAIt is not clear whether my hon. Friend refers to Two-Year War Expenditure Certificates or to the 15s. 6d. War Savings Certificates. The income received by way of discount on War Expenditure Certificates is liable to Income Tax exactly as in the case of Treasury Bills. As regards War Savings Certificates, subject to the approval by Parliament of Clause 27 of the Finance (No. 2) Bill as amended in Committee yesterday, any income received in respect of these certificates is entirely exempt from Income Tax.
§ Mr. SNOWDENDoes that apply to people whose income is above the Income Tax limit?
§ Mr. McKENNAYes; the Bill was amended yesterday. There is no limit of income, but there is a limit to the amount of these certificates which may be held by one person.
§ Mr. BRYCEIn regard to the War Expenditure Certificates, is the Income Tax exacted from private people?
§ Mr. McKENNAThe War Expenditure Certificates are, exactly in the same position as Treasury Bills. As I have more than once stated in this House, they are subject to Income Tax.