HC Deb 30 July 1974 vol 878 cc156-7W
Mr. MacGregor

asked the Chancellor of the Exchequer what is the maximum increase in net dividend actually paid to the shareholders—i.e., not taking into account the imported tax credit in 1974–75 as compared with 1973–74, (a) for those paying tax at the basic rate, (b) for those paying tax at the highest rate as a result of the increase announced by him on 22nd July.

Dr. Gilbert,

pursuant to his reply [29th July 1974], gave the following information:

Companies whose financial year ends after 31st July 1974 will be permitted to increase their gross dividend by up to 121½ per cent. For an individual paying income tax at the basic rate the maximum increase net of tax is 7.7 per cent. For a taxpayer paying the highest rate of tax the comparable charge is a decrease of 23.5 per cent. and for a taxpayer also paying the investment income surcharge a decrease of 77.5 per cent.