HC Deb 21 July 1930 vol 241 cc1748-9
65. Mr. SCRYMGEOUR

asked the Chancellor of the Exchequer whether, in view of representations made in regard to imposition of income tax upon Government grants given to local authorities for schemes in the interests of employment, he is now prepared to relieve Dundee harbour trustees of such taxation imposed in connection with the grant to their harbour extension scheme recently sanctioned by the Government?

The FINANCIAL SECRETARY to the TREASURY (Mr. Pethick-Lawrence)

I would refer the hon. Member to the reply my right hon. Friend gave on the 23rd June to a question on this subject, and I am sending him a copy of that reply. The question of Income Tax in relation to the particular grant to which he refers has not yet arisen; but if it is similar to those to which the previous answer relates, it will, I am advised, clearly fall to be taken into account, under Income Tax law, in computing the liability of the trustees.

Mr. SCRYMGEOUR

In view of the statement made by the Secretary of State of Scotland to the Edinburgh Conference of local authorities that non-profit making schemes will be relieved of such taxation, will this scheme of the Dundee Harbour Trust not come under that promise?

Mr. PETHICK-LAWRENCE

I should have to have that answer before me, and I should require notice of that question.

Mr. ERNEST BROWN

Is not the hon. Gentleman aware that the answer to which he refers covered varying types of cases and not one particular case as in this instance?

Mr. ARTHUR MICHAEL SAMUEL

Is it right to say that the imposition of Income Tax is made upon Government grants?

Mr. PETHICK-LAWRENCE

I cannot answer with regard to details of particular cases. I should require notice of such questions.