§ 77. Sir J. Mellorasked the Chancellor of the Exchequer what rate of interest is assumed in arriving at the price to be 1660 paid for securities subject to an acquisition order, when allowance is made for the fact that a minimum period of eight weeks elapses between the date of the order and payment; whether the amount to be added to the market price at the date of the order is calculated after deduction of Income Tax; and whether recipients are authorised to treat this amount as income taxed at source?
§ The Chancellor of the Exchequer (Sir Kingsley Wood)The allowance made is based on a rate of 2½ per cent. per annum. The payment is a single capital payment, and no question arises of any part of it constituting income taxed at source.
§ Sir J. MellorAs this is described in the official circular as an allowance made in respect of postponement, ought not trustees to be entitled to treat this as income? Otherwise, the beneficiaries lose income for eight weeks.
§ Sir K. WoodThe position is as I have stated it. The payment is a single capital payment.
§ Sir J. MellorWill the Chancellor of the Exchequer apply his mind to that perfectly simple and straightforward point?