§ 41. Mr. NIELDasked the Chancellor of the Exchequer why deductions from the interest paid upon the 4½ per cent. War Loan on 2nd June last was made at the rate of 5s. in the £ for the whole period of six months, whereas during four months of that period the authorised rate of tax was 3s. only; and upon what principle does he justify this excess and unauthorised taxation?
§ Mr. McKENNAThe hon. Member is under a misapprehension, as under the law Income Tax was deductible at the rate in force when the interest in question became payable, namely, 5s. in the £.