§ Mr. Donald Stewartasked the Chancellor of the Exchequer if he will seek to introduce legislation to exempt community councils from tax.
§ Dr. GilbertMy right hon. Friend has at present no plans to do so. Community councils do not carry out the usual functions of local authorities and have no power to raise money from the rates. Contributions towards their expenses, however, from regional, island and district councils will not in general be taxable, and liability would be restricted to tax on income from investments or on 335W profits from activities which are deemed to constitute a trade.