§ Order of the Day for the Third Reading (postponed from yesterday) read.
LORD ELPHINSTONEYour Lordships will recollect that when I moved the Third Reading of this Bill yesterday Lord Gainford raised a point to which I was at the moment unable to reply. I have since had an opportunity of consulting the authorities concerned, and with your Lordships' permission I will read the Memorandum which they have given me on the point: The clause to which Lord Gainford referred—Clause 14—already involves an important concession, as it enables the person who had only a contingent interest in a fund to treat, when the contingency arises, the accumulated income which in fact comes to him as capital—i.e., as part of the corpus of the fund—as though it had actually been his income year by year during the period of accumulation, and he will be allowed to claim Income Tax repayment accordingly if it pays him to do so. He can claim this repayment as soon as the fund vests in him—namely, on the happening of the contingency. Plainly he cannot claim before, because at any earlier date not only is the money not his but it may 38 never become his. There is no delay so far as the Board of Inland Revenue is concerned, but equally there is no possible ground for the allowance of interest in addition to this repayment of tax. No interest is allowed in other cases of Income Tax repayment claims.
§ Moved, That the Bill be now read 3a.—(Lord Elphinstone.)
THE MARQUESS OF CREWEMy Lords, I confess I am not cognisant of the importance of the point which Lord Gainford raised yesterday, but as he is not in his place to-day I desire to acknowledge the courtesy of the noble Lord opposite in having taken the trouble to discover from the Treasury what they conceive to be, as I understand, a complete answer to the contention of my noble friend.
§ On Question, Bill read 3a, and passed.