§ The Treasury may direct that any Exchequer Bonds issued under their authority during the continuance of the present war and a period of six months thereafter shall be issued subject to the condition that, the interest on those bonds shall be paid without deduction of Income Tax, and the interest shall be so paid accordingly; but any such interest shall be accountel for and charged to Income Tax under the third case of Schedule D, subject, however, to any provisions of the Income Tax Acts with respect to exemptions or abatements.—[Mr. McKenna.]
§ Clause brought up, and read the first time.
§ Motion made, and Question proposed, "That the Clause be read a second time."
§ Mr. McKENNAThis is a proposal for the payment of interest on Exchequer Bonds which are registered without deduction of Income Tax. It is a small relief to be able to give to the investors whose Income Tax would not reach, under ordinary circumstances, 5s. in the £, but, at any rate, if they invest their money in Exchequer Bonds or buy Exchequer Bonds which are registered they will not have any Income Tax deducted at the source. In that case the person will be assessed, and will then only pay the Income Tax which is due upon them. It is proposed in order in some way to get over a grievance.
§ Clause added to the Bill.