HC Deb 25 February 1941 vol 369 cc420-1
Sir K. Wood

I beg to move, in page 20, line 23, to leave out "interest at the proper rate," and to insert "the proper interest thereon."

This Amendment, and the following Amendment on the Order Paper, must be considered together. In this connection 1 should like to express my indebtedness to my hon. Friend the Member for Chesterfield (Mr. Benson). He suggested that the interest on a pre-payment contribution should be charged to Income Tax by direct assessment and not by deduction. This Amendment gives effect to his proposal, which we consider simplifies the computation of the interest.

Amendment agreed to

Further Amendments made:

In page 20, line 26, after "instalment,' insert: the balance, together with the proper interest thereon, shall be applied.

In line 28, leave out "so reduced," and insert: reduced by reason of any payment in advance under this Section.

In line 32, leave out Sub-section (2), and add: ( ) For the purposes of this Section—

  1. (a) the proper interest on any sum paid under this Section is an amount equal to one halfpenny for each complete pound of the sum paid for each complete month in the period beginning with the date of the payment and ending with the day before the date of the instalment next falling due;
  2. (b) the proper interest on the balance remaining after the discharge of any instalment is an amount equal to one halfpenny for each complete pound of the balance for each complete month of the period beginning with the date on which that instalment fell due and ending with the day before the date of the instalment next falling due
( ) Notwithstanding anything in any enactment, the full amount of any interest allowed under this Section shall be allowed without deduction of Income Tax; but the person to whom the interest is allowed shall be assessed and charged to Income Tax under Case III of Schedule D on the full amount of the interest." —[Sir K. Wood.]

Clause, as amended, ordered to stand part of the Bill.