HC Deb 10 May 1916 vol 82 cc662-3
89. Mr. FELL

asked the Chancellor of the Exchequer under what Statute or authority Income Tax at the rate of 5s. in the £ is deducted by banks and financial agents from dividends or interest payable by foreign Governments for a period when the Income Tax was payable at 3s. in the £ or some other rate lower than 5s.?


Income Tax on foreign or Colonial dividends or interest entrusted to an agent in the United Kingdom for payment is chargeable at the rate applicable to the date when such dividends became payable in this country and not at the rate or rates in force during the period of accrual of the dividends. In the case of coupons payable abroad but realised through bankers and others in this country tax is chargeable at the rate applicable to the date of realisation of the coupons. The authority is to be found in a series of enactments commencing with the Income Tax Act, 1842.


Will the right hon. Gentleman refer me to the exact section? I cannot find it anywhere.


I shall be glad to do so, but I am afraid I could not give my hon. Friend the reference now across the floor of the House.