§ 63. Sir J. D. REESasked whether dividends of War Loan for 1917–18 are to be subject to Income Tax at 5s. or whether they are to be made liable to such higher rate, if any, as may be levied for 1918–19; and whether the Income Tax authorities are demanding the rate which may be leviable next year in respect of dividends receivable in respect of such War Loan through banks?
§ Mr. BONAR LAWDividends of registered or inscribed stock of the Five per Cent. War Loan, 1929–1947, are chargeable to Income Tax on the amount arising to the taxpayer within the preceding year. It follows that there is no Income Tax assessment for the year 1917–18 on the dividends arising in that year, but these form the statutory basis for the assessment of the income for the following year 1918–19.