§ 59. Mr. Nabarro
asked the Chancellor of the Exchequer whether he is aware that the net rate of interest of ¾ of 1 per cent. per annum in respect of tax reserve certificates has not been varied for five years; and whether, in view of increases in the 143W Bank rate and general interest rates, he will authorise the Bank of England commensurately to increase the net rate of interest applicable to tax reserve certificates.
§ 61. Mr. Erroll
asked the Chancellor of the Exchequer if, in view of the general increase in money rates, he will revise the rate of interest payable on tax reserve certificates.
§ Mr. R. A. Butler
I have agreed to the issue of a new tax reserve certificate (third series), which will bear interest at the rate of 1¼ per cent. per annum, on terms similar to those of the current issue, except that the limit of five years on the period during which the certificates can be tendered in payment of tax will not be applied to the new issue. The condition that interest will not be allowed on any certificate for more than two years will be retained. The new certificates will be available as from tomorrow; the Bank of England will issue a prospectus containing the full terms of issue.
Existing certificates will be accepted in payment of Excess Profits Levy in addition to the specified taxes; otherwise, the terms of such certificates will be unchanged. Interest allowed on either old or new certificates is exempt from Excess Profits Levy and other specified taxes.