§ Mr. JOYCEasked the Chancellor of the Exchequer whether his attention has been 38W called to the fact that Income Tax at the rate of 5s. in the £ has been charged to War Loan subscribers whose income from all sources does not reach £500 on the interest paid on 1st June, 1916; whether such interest should only be charged with Income Tax at the rate of 3s. in the £; and will he say if the 2s. extra charge will be deducted from the Income Tax payable on the interest due on 1st December, 1916, to such persons?
§ Mr. McKENNAThe hon. Member's question is understood to relate to the 4½per cent. War Loan. The interest on this loan is payable on 1st June and 1st December, and is by law subject to deduction of Income Tax at the standard rate in force at the time of payment (5s. in the £ for the current Income Tax year). An individual whose income falls within the limits affording relief by way of a reduction of rate in respect of his unearned income is granted that relief, as regards this interest and any other income which is taxed at the source, either by a deduction from the Income Tax payable by him under a direct assessment upon other income or, where there is no such direct assessment, by way of repayment, and, it will be remembered, such repayment claims are now admitted half-yearly.