§ Mr. D. A. THOMAS
asked the Chancellor of the Exchequer if the Board of Inland Revenue is now withholding from specially authorised loan and investment societies registered under the Friendly Societies Acts the privileges of exemption from assessment for Income Tax extended to friendly societies by the Inland Revenue Acts; and whether, seeing that such societies are mutual and co-operative, that for the past twenty years no assessment has been made upon them, and that 95 per cent. of the members are in receipt of incomes under £2 per week, while the remaining 5 per cent. are already assessed or assessable in the customary manner, he will give instructions that those societies shall continue to be exempted from assessment?
§ Mr. LLOYD GEORGE
The exemption from Income Tax only extends to societies registered under the Friendly Societies Act as friendly societies, and does not extend to the "specially authorised societies" registered under that Act. In practice, however, the Income Tax assessment on societies such as those mentioned by my hon. Friend is restricted to the profits or interest paid by them to persons with incomes exceeding £160 per annum. There has been no change in practice as regards the assessment of the societies referred to.