§ 53. Lieut-Colonel ACLAND-TROYTE
asked the Financial Secretary to the Treasury whether he is aware that the Agricultural Mortgage Corporation, Limited, established under the provisions of Part I of the Agricultural Credits Act, 1928, decline to allow the deduction of Income Tax from the interest portion of half-yearly instalments in repayment of loans; and if he will state by what authority this is done?
§ Mr. HORE-BELISHA
In order that farmers who are exempt from Income Tax may be relieved from the necessity of accounting to the Revenue for the tax on interest paid to this corporation, arrangements have been made under which all such interest may be paid without deduction of tax. Where the farmer is not exempt, the appropriate relief from tax is given to him by the Inland Revenue authorities and he is thus placed in the same position as if he had deducted tax. I am not aware that any difficulty has arisen in this matter, but if my hon. Friend knows of any case where the arrangement has caused inconvenience, I will gladly look into it.