§ Mr. NottI beg to move Amendment No. 46, in page 10, line 28, at end insert:
'(4A) For the purposes of this section amounts paid or credited to trustees in any year of assessment in respect of dividends or interest payable in respect of shares in or deposits with or loans to a building society with which arrangements under section 343 of the Taxes Act are in force for that year shall be treated as income for that year received by the trustees after deduction of income tax from a corresponding gross amount.In this subsection expressions used in section 343 of the Taxes Act have the same meanings as in that section.'.
§ Mr. Deputy Speaker (Miss Harvie Anderson)With this amendment we are to discuss Government Amendment No. 47.
§ Mr. NottThe clause imposes an investment surcharge on the income of accumulation and discretionary trusts. Clause 17, to which Amendment No. 47 relates, is concerned with the taxation of distributions of income by the trustees of such trusts.
The purpose of the amendments is to make clear the treatment of building society interest received by the trustees of a trust within this legislation. It is proposed in the amendments that interest credited to trustees within the legislation should be deemed to have suffered tax at the basic rate, so that the additional rate of 15 per cent. will be payable on the amount of income credited. grossed up at the basic rate.
I hope that that is sufficient explanation.
§ Amendment agreed to.