HC Deb 04 July 1932 vol 268 cc38-9
Sir STAFFORD CRIPPS (by Private Notice)

asked the Lord President of the Council whether he could usefully make any further statement in regard to the position of trustees under the War Loan Conversion scheme?

Mr. BALDWIN

I am obliged to the hon. and learned Gentleman for giving me this opportunity. As I have also stated in a written reply to the question by the hon. Member for Cambridge University (Sir J. Withers), the operation is governed by Part III of the Finance (No. 2) Act, 1931, and Section 13 (1) of that Act is therefore applicable. That Section gives a specific assurance by Parliament that trustees and other persons acting in a fiduciary character are expressly authorised to make continuance applications. This fact is briefly referred to in the Explanatory Note now in the hands of holders. It is well that it should be widely known.

Sir A. M. SAMUEL

Trustees are very much in doubt as to the meaning of the statement in the explanatory note W that the cash bonus shall belong to the person entitled to the income of a bolding. Can my right hon. Friend say whether the person is entitled to receive that cash bonus as income or as a capital increment payment?

Mr. BALDWIN

I must, see that question on the Paper.

Sir S. CRIPPS (by Private Notice)

asked the Lord President of the Council whether the holders of stock of the 3½. per cent. War Loan will be chargeable to Income Tax for the year 1933–34 upon the amount of their dividends for that year, or by reference to the dividend for 1932–33 upon their corresponding holdings of 5 per cent. War Loan?

Mr. BALDWIN

I am not sure whether the question I have before me and the hon. and learned Member's question are identical. The answer to the question I have here is in the affirmative. As some doubts have been expressed, I am glad to make the matter clear.

Sir S. CRIPPS

Does the answer the right hon. Gentleman has given show that Income Tax will be charged upon the basis of the 3½ per cent. Loan and not the 5 per cent.?

Mr. BALDWIN

Perhaps I might, with permission, read the question as I had it. The question was: to ask whether it is the case that the holders of stock of the 3i per cent. War Loan will be chargeable to Income Tax for 1933–34 upon the amount of their dividends for that year, and not, etc. The answer is in the affirmative.