§ Mr. Stevensasked the Chancellor of the Exchequer what was the estimated amount of revenue forgone in the previous financial year in respect of income tax relief on interest received from building societies.
§ Mr. Peter ReesI am not sure what my hon. Friend means by income tax relief on interest received from building societies. The arrangements under which societies pay a composite rate of income tax do not involve any relief as the tax paid is, as nearly as may be, the same in aggregate as would have been payable if investors were taxed at the basic rate individually taking into account their personal allowances and other reliefs, and any liability of the investors to rates in excess of the basic rate is assessed on them directly.