§ 59. Mr. HAYDN JONESasked the Chancellor of the Exchequer whether his attention has been called to the demand made by the Inland Revenue authorities on the Dendraeth Rural District Council for the payment of Income Tax in respect of annual repayments of the principal of a loan advanced for the purpose of providing a water supply at Harlech; whether he is aware that it will require a rate of 2½d. to pay the tax; and whether he will take steps to exempt local authorities from payment of tax on capital expended on public utility services?
§ The FINANCIAL SECRETARY to the TREASURY (Mr. Pethick-Lawrence)It is a fundamental principle of the Income Tax Acts that the tax shall be charged on the profits of any undertaking without regard to the fact that such profits may be applied towards reduction of capital debts. I see no sufficient reason for proposing an amendment of the law in this respect.