HC Deb 26 June 1916 vol 83 cc691-2

(1) Any person from whom any sum is due on account of any Death Duty may pay that sum or any part thereof by means of the transfer in accordance with Regulations made by the Treasury to the Commissioners of Inland Revenue of an equal amount of any Exchequer Bonds forming part of an issue which may be approved by the Treasury for the purpose, and any Exchequer Bonds so transferred shall be accepted by the Commissioners in satisfaction of the amount.

(2) Any Exchequer Bonds so transferred shall be deemed to mature for payment on the date of the transfer, and the principal and interest of the bond when received by the Commissioners of Inland Revenue shall be brought into account as Death Duty revenue in such manner as the Treasury direct.

(3) Exchequer Bonds shall for the purposes of this Section be deemed to be of the amount of their nominal value with the addition of any interest accrued due but remaining unpaid.—[Mr. McKenna.]

Clause brought up, and read the first time.

Motion made, and Question proposed, "That the Clause be read a second time."

Mr. MONTAGU

a great deal of persuasion has been addressed to my right hon. Friend and myself with a view to doing what is proposed in the Clause, and it is believed that it would increase the sale of Exchequer Bonds, and we have responded to those appeals.

Mr. J. MASON

I welcome this suggestion, which is a convenient one for wealthy individuals. I would suggest the consideration of the desirability of allowing prepayment of Death Duty at compound interest. That would have the great advantage of relieving the State during a considerable period for the payment of any interest at all. I am sure it would be convenient to individuals to be able to pay a portion of Death Duties during their lives, not always in fixed amounts during any particular year. It would be a very much easier form in which to pay them by than doing it by the ordinary form of insuring life. I made this suggestion some years ago, and I cannot help thinking that there are some advantages now which might appeal to the right hon. Gentleman which did not appeal before.

Question put, and agreed to. Clause added to the Bill.