§ 72. Mr. SWANasked the Chancellor of the Exchequer whether he is aware that the fixed dividends on companies' preference shares are frequently as high as 15 per cent.; and whether he proposes that the concession which he announced would be made to companies in respect of their debenture interest and fixed preference dividends should apply to dividends at a higher rate than 7 per cent.?
§ Mr. BALDWINIt is proposed that if in any case the Corporation Profits Tax exceeds a sum equivalent to 2s. in the £ on the profits which remain after payment of interest and dividends payable at a fixed rate on existing issues of debentures and preference shares, the excess of the charge over that sum shall be remitted. My right hon. Friend does not propose to limit the application of this concession to issues on which the fixed rate of interest does not exceed 7 per cent.