HC Deb 13 May 1976 vol 911 c662
13. Mr. Spriggs

asked the Chancellor of the Exchequer why a person who has his tax deducted by a building society at the source for interest earned then receives two separate new assessments for the same interest in the current financial year, together with demands for respective payments and if he will make a statement.

Mr. Robert Sheldon

Building society interest is treated as received after deduction of basic rate tax, and so an assessment is not generally necessary unless the investor is liable to higher rate tax or to the investment income surcharge. If my hon. Friend has any particular case in mind I will, of course, be happy to look into it if he will let me have details.

Mr. Spriggs

I thank my hon. Friend for that offer and assure him that I shall let him have the details.

Is my hon. Friend aware of the deep frustration and loss of confidence in the Inland Revenue because of its new assessments on figures which it already has from year to year? What does he propose to do about that?

Mr. Sheldon

These arrangements between the building societies and the Inland Revenue have not generally caused serious problems. I shall take the opportunity of having discussions with my hon. Friend. We may be able to clear up the point that he has in mind.