§ 39. Mr. Osborneasked the Chancellor of the Exchequer if he is aware that employees who take up bonus shares must pay Income Tax on the difference between the issue and market price; and, in order to encourage this form of property-owning democracy, if he will take steps to free such bonus issues to employees from tax penalties.
§ Mr. SimonMy Hon. Friend will not expect me to anticipate my right hon. Friend's Budget statement.
§ Mr. OsborneIs my hon. and learned Friend aware that the Midland Bank at the present time is offering 600,000 £1 ordinary shares to its workers at £1 a share, and they have to pay tax on the difference between £1 a share and 65s. which is the market price, whereas ordinary shareholders like myself who are paying £2 a share get the difference between £2 and 65s. free of tax? Is it not stupid to tax the workers on a bonus given to them in this way when we ourselves say that we intend to build a property-owning democracy?
§ Mr. SimonI think it would be highly dangerous at this sensitive period for me to comment on my hon. Friend's statement, except to say that I will draw it to the attention of my right hon. Friend.