§ Sir J. Lucasasked the Chancellor of the Exchequer why it is laid down that no society, association or body of persons, other than a registered friendly society, can invest their money in National Savings Certificates; that money so invested in response to the appeal is to be returned; and whether genuine bodies, such as local political associations, will now be allowed to invest their funds in National Savings Certificates up to the usual limit?
§ Sir K. WoodNational Savings Certificates are specially designed to encourage saving on the part of the smaller investor, and for this purpose they carry exceptional concessions, of which the most important is freedom from Income Tax. These concessions make it necessary to limit very strictly both the amount of Savings Certificates which any individual can hold, and the category of investors qualified to purchase them. In practice, therefore, the only corporate bodies permitted to hold Savings Certificates are those which for revenue purposes are regarded as strictly charitable and on that account are exempt from Income Tax.1158W I regret that I am unable to extend the privilege of holding Savings Certificates to such bodies as my hon. and gallant Friend suggests, but I would remind him that an alternative form of lending money to the State exists in the present issue of 3 per cent. Defence Bonds.