§ Sir I. Alberyasked the Chancellor of the Exchequer whether he is aware that for the current quarter some dividends on gilt-edged securities are being paid less an Income Tax deduction of 10s. 6d. in the £ which inflicts real hardship on small investors who are not liable to such a heavy rate of taxation; and what instructions have been given to facilitate an early reclaim and repayment of the tax over-deducted?
§ Sir K. WoodThe deductions in question are made in accordance with the provisions of the Fifth Schedule to the Finance (No. 2) Act, 1940, which prescribes the procedure by which insufficient deductions of tax from payments made earlier in the present year are made good so far as possible by an increased deduction from the next subsequent payment. With regard to the latter part of the Question, it is not necessary for a person whose income entitles him to relief from Income Tax by way of repayment to wait until the end of the year before making any claim. A claim for a repayment on account may be made as soon as it can1470W be shown that some repayment for the year will be due, and it is part of the standing instructions to officers of the Inland Revenue Department that such claims shall be dealt with promptly.