§ Sir J. D. REESasked the Chancellor of the Exchequer whether banks and brokers are receiving the customary commission on British Treasury Bills and War Saving Certificates operations which are effected through their agency; whether the latter security is free from any liability to Income Tax now, at maturity, and during the intervening period; and, if the answer be in the negative as regards commission in the case of brokers, whether commission is being paid to banks on War Saving Certificates, or Treasury Bills, or on both classes of securities?
Mr. McKINNON WOODNo commission is paid in any circumstances on Treasury Bills. A commission is paid to bankers who act as agents for the Post Office in receiving subscriptions for War Savings Certificates. War Savings Certi-322W ficates are not negotiable and are not capable of being dealt in on the Stock Exchange, and though brokers occasionally apply for such certificates on behalf of their clients it is not possible to make use of the services of brokers as part of the regular machinery of issue. As regards the exemption of interest on War Savings Certificates from Income Tax, I would refer the hon. Member to Section 42 of the Finance Act, 1916.