HC Deb 12 July 1965 vol 716 cc212-4
Sir Eric Fletcher

I beg to move Amendment No. 337, Schedule 11, in page 180, line 29, after "amount", to insert "of the excess".

This is a drafting Amendment to improve the language.

Mr. Patrick Jenkin

In Committee I raised a point on the question of dividends or interest paid under deduction of tax and the right of set-off allowed. I think that the Chief Secretary said that he would look at the point. On rereading my speech I realise that I did not make the point clear. Can the Minister without Portfolio say whether if one receives interest under deduction of tax one may set that tax off against tax due in respect of dividends or, vice versa, can one set off tax on dividends against tax on interest? Are the two interchangeable or must they be kept quite separate, interest against interest and dividends against dividends?

Sir Eric Fletcher

I do not think that point arises on this Amendment, but I will look into it and write to the hon. Member.

Amendment agreed to.

Sir Eric Fletcher

I beg to move Amendment No. 172, Schedule 11, in page 180, line 45, at the end to insert: , and shall in any such return specify any amount of dividends included therein which has been paid under deduction of tax notwithstanding that an election under Section 44 (3) of this Act was in force in relaton thereto,". This Amendment is consequential on Amendment No. 169 to Clause 44 which has been accepted by the House.

Amendment agreed to.

Sir Eric Fletcher

I beg to move Amendment No. 173, Schedule 11, in page 182, line 49, after "paid", to insert: less than three months after the giving of the notice and". Perhaps it would be convenient to discuss this Amendment with Amendment No. 174. These two Amendments deal with the same point. They are designed to meet the procedure for bringing into effect an election to have dividends and annual payments paid without deduction of Income Tax. They are liberalising Amendments for the benefit of the taxpayer and I hope that they will be acceptable to the House.

Amendment agreed to.

Further Amendment made: Schedule 11, page 183, line 1, leave out from "but" to end of line 3 and insert: shall be of no effect if within those three months the inspector notifies the companies concerned that the validity of the election is not established to his satisfaction: Provided that the companies shall have the like right of appeal against any decision that the validity of the election is not established as the company paying the dividends would have if it were an assessment made on that company under Schedule D, and the enactments relating to an appeal against such an assessment (including any enactment relating to the statement of a case for the opinion of the High Court) shall apply accordingly "—[Sir Eric Fletcher.]

Sir Eric Fletcher

I beg to move Amendment No. 175, Schedule 11, in page 183, to leave out lines 9 to 11 and to insert: and any such notice shall have effect from the time it is given". This Amendment relates to the revocation of an election. The effect is that the revocation of an election shall take effect straight away.

Amendment agreed to.

Sir Eric Fletcher

I beg to move Amendment 176, Schedule 11, in page 183, line 47, at the end to insert: 11. This Part of this Schedule shall apply for purposes of section 44 (6A) of this Act, with the necessary adaptations of references to dividends, as it applies for purposes of section 44 (3). This is consequential on Amendment No. 107.

Amendment agreed to.