§ 20. Sir JOHN JARDINE
asked the Secretary to the Treasury whether he is aware that much dissatisfaction is felt by those engaged in directing and managing banks in the City of London having branches in India, Burma, the Straits Settlements, East Africa, and China, and discouragement as to placing further issues of 5 per Cent. Exchequer Bonds among their customers in those countries, by the fact that the authorities engaged in the collection of Income Tax hold that exemption may not be granted on such bonds issued by the Bank of England on 16th December, 1915, to holders ordinarily resident in such countries for purposes of trade or profession except on declaration of having abandoned all intention of returning to the United Kingdom; and whether, seeing that this strict definition of new domicile did not appear until the issue of Form C, No. 6 Income Tax, some months after and was not in contemplation of the holders at the time that they subscribed to the issue of 16th December, 1915, and seeing that the word "domicile" is ambiguous as a term of law and in regard to acquired domicile is not always so strictly interpreted, he will, in order to give relief in cases of misconception, make inquiry into the circumstances?
§ The CHANCELLOR of the EXCHEQUER (Mr. McKenna)
My attention has been drawn to this matter and I propose to move an Amendment on the Committee stage of the Finance (No. 2) Bill which will have the effect of giving exemption from Income Tax in respect of 5 per Cent. Exchequer Bonds to persons not ordinarily resident in the United Kingdom, irrespective of the condition of domicile.