§ Sir S. Reedasked the Chancellor of the Exchequer whether interest accumulating on the issues of War Savings Certificates made by the Government of Northern Ireland and by several Colonies is subject to United Kingdom Income Tax?
§ Sir K. WoodUnder the existing law the interest on Ulster Savings Certificates is liable to Income Tax unless the holder is resident and domiciled in Northern Ireland, and the interest on all Colonial issues is liable to Income Tax if the holder is resident in any part of the United Kingdom. The gross proceeds of the sale of the current series of Ulster Savings Certificates and of several Colonial issues of Certificates are, however, being re-lent to His Majesty's Government for the prosecution of the war, and subscribers to those issues (many of whom are persons temporarily 2097W in Northern Ireland or the Colonies on War Service) are giving us just as much assistance as if they had subscribed direct to National Savings Certificates. I intend, therefore, to seek Parliament's approval for legislation in my next Finance Bill to ensure that subscribers to these issues, who might be liable to United Kingdom Income Tax on their holdings, are not placed in a worse position as regards that liability by purchasing such Certificates instead of National Savings Certificates.