HC Deb 15 April 1926 vol 194 cc474-5

asked the Chancellor of the Exchequer if his attention has been called to the recent decision in the House of Lords to the effect that the distribution of a company's reserves, or part thereof, is not subject to Super-tax, even if such distribution is in such form as to make it equivalent to a cash payment; if he is aware of the possibilities of Super-tax evasion opened up by this decision; and if he will state what steps he proposes to take to deal with the matter?


I would refer the hon. Member to the reply which I gave to a question raising a similar point asked by the hon. Member for Newcastle East on the 9th March. At the same time I would observe that in the case to which the hon. Member appears to refer the Shareholder had in fact no option to take a cash payment.


Is the right hon. Gentleman aware that as the law now stands, a company may make a bonus distribution of debentures to a Super-tax payer, and those debentures may afterwards be redeemed for cash, and no Super-tax is payable on them?


I hesitate to answer, without notice, questions which relate to interpretations of the law.