§ 28. Mr. John Hallasked the Chancellor of the Exchequer if he is aware that, although according to the terms of issue interest on tax reserve certificates is exempt from Income Tax, Profits Tax and Excess Profits Tax, nevertheless such interest is grossed up for the purpose of assessing Surtax and distributed profits tax; and if he will either amend the existing terms of issue or ensure that such interest is not chargeable to tax.
§ Mr. SimonNo, Sir. Interest on tax reserve certificates is exempt from both Surtax and Profits Tax.