Tax Reserve Certificates

HC Deb 14 April 1965 vol 710 cc209-10W

Mr. Duffy

asked the Chancellor of the Exchequer whether tax reserve certificates will be acceptable in payment of Corporation Tax.

Mr. Diamond

A new prospectus will be prepared in due course to provide for the continuation of the principle of accepting tax reserve certificates in satisfaction of tax due on company profits when the new Corporation Tax applies. Tax reserve certificates of any issue will be available for use in payment of Corporation Tax, but certificates issued under the new prospectus will not be usable against any liability in respect of Income Tax deducted at source from interest or dividends paid after the new system has come into force on 6th April 1966. Interest on tax reserve certificates will be exempt from Corporation Tax.