HC Deb 16 September 1931 vol 256 cc847-8W
Captain TODD

asked the Chancellor of the Exchequer whether any provision, in relation to the deduction of Income Tax from dividends and interest, will be made in the coming Finance Bill to meet the case of companies and others who have already prepared warrants showing deductions at 4s. 6d. in the £ for payments at dates which may prove to be subsequent to the passing of the Finance Act and who would find it impracticable to prepare fresh warrants within the limited time available?


The Finance Bill will include provisions to legalise deductions by reference to the standard rate of 4s. 6d. in the £, although they may be made after the passing of the Finance Act, if they are in fact made before 15th October next. The Bill will also contain provisions relating to the subsequent adjustment of under-deductions of tax in such cases. As was recently explained in answer to a question on a cognate matter, in the case of dividends of British companies, other than dividends payable on preferred shares at a fixed gross rate per cent., no question of any adjustment need arise because, under the existing law, the net amount of any such dividend will be taken for all Income Tax purposes to represent income of such an amount as, after deduction of tax by reference to the increased rate of 5s., is equal to the net amount paid.