HC Deb 17 June 1912 vol 39 cc1445-6W

asked the Chancellor of the Exchequer if his attention has been called to the fact that bankers are allowed a commission of 4d. in the £ on Income Tax, deducted from interest or dividends collected by them for their customers, on payment by them of that Income Tax to the Commissioners of Inland Revenue; is this or any other such commission allowed to others than bankers and, if so, to what categories of other persons; is it allowed to the Bank of England; is it allowed by virtue of a Treasury Order or, if not, how otherwise and in virtue of what Section of what Act of Parliament; and will he state what this commission amounted to in all for the year 1911–12?


Under the authority of Section 26 of the Act 48 and 49 Vic, cap 51, poundage at the rate of 4d. in the £ is allowed to bankers and other persons entrusted with the payment of Foreign and Colonial dividends for their services in connection with the assessment and collection of the Income Tax thereon. Poundage is allowed to the Bank of England for the performance of similar services, the rate being 4d. in the £ in respect of coupons and 3d. in other cases. The poundage paid to bankers and other agents for services in this connection during the year 1911–12 amounted to £74,000.


asked the Chancellor of the Exchequer if he can state, in a manner similar to his statement in answer to a question of 14th April, 1910, for each of the years 1908–9, 1909–10, 1910–11, and 1911– 12, the total agregate amount of income subject to Income Tax on which tax was received; abatements allowed; life insurance premiums allowed; income, including abatements and life insurance premiums (total of columns 2, 3, and 4); increase or decrease per cent. on the preceding year; net produce of Income Tax; and average virtual rate of tax per cent.?


The figures for 1908–9 and 1909–10 are as follows:—

Year 1908– Year 1909–10.
£ £
Total aggregate amount of income subject to Income Tax on which tax was received 693,323,082 686,812,104
Abatements allowed 120,274,508 120,558,302
Life Insurance premiums allowed 10,460,051 10,899,853
Relief in respect of children allowed 3,955,538
Total of the foregoing 824,057,641 822,225,797
Increase Decrease
Increase or decrease per cent. on the preceding year 3.10 .22
£ £
Net produce of Income Tax 33,408,754 37,679,902
Average virtual rate of tax per cent. 4.05 4.58
No later figures are immediately available, but those for 1910–11 will appear in the next annual report of the Commissioners of Inland Revenue.