HC Deb 08 March 1966 vol 725 cc1902-3
50. Mr. Robert Cooke

asked the Chancellor of the Exchequer whether he will introduce legislation to relieve statutory undertakings from the additional burden of Corporation Tax imposed by the 1965 Budget.

Mr. Diamond

No, Sir.

Mr. Cooke

The citizens of Bristol will be most disappointed with the right hon. Gentleman's Answer, because the right hon. Gentleman has imposed £200,000 extra tax on them every year. Will he do something about it?

Mr. Diamond

I am sure that the citizens of Bristol take a different view from that of the hon. Member as to what their proper responsibilities are. The citizens of Bristol take the same view as the Public Accounts Committee of this House, that it is wrong that an anomaly should continue to exist as a result of which tax could be deducted from a dividend, the tax reclaimed by the individual taxpayer, and tax not accounted for to the Inland Revenue. It is putting that anomaly right, as the P.A.C. asked that we should do, which accounts for this situation, and it has nothing to do with Corporation Tax—in the sense that any Government would have sought to put it right.