HC Deb 22 December 1919 vol 123 cc1029-30W

asked the Chancellor of the Exchequer whether it is desirable to bring to the notice of Income Tax payers, either on the demand note or otherwise, that sums due on the 1st July, 1920, are subject to a discount of 2½ per cent. if paid on the 1st January, 1920, and to request the taxpayer, if possible, to pay on the earlier date?


I would refer my hon. and learned Friend to Section 159 of the Income Tax Act, 1918, which provides for the allowance of discount on repayments of Income Tax charged under Schedule D "at the rate of £2 10s. per cent. per annum" on the amount prepaid "for the period commencing on the day when the payment was made and ending on the day limited for payment." The allowance is confined to payments under Schedule D, and is required to be claimed at the time of payment. The course suggested by my hon. and learned Friend could not at this late date be adopted for the current year. As regards the future, the whole question of the allowance of discount on prepayment of Income Tax has been brought to the notice of the Royal Commission, and will be considered in the light of any recommendations which they may make.