§ 60. Mr. Roy Jenkinsasked the Chancellor of the Exchequer how far it is now the practice of the Inland revenue to direct that all hire-purchase companies should deduct tax from their payments of deposit interest; and whether he is satisfied that all such companies are observing the rule.
§ Mr. H. BrookeIn general in such cases tax is deductible from deposit interest. But this may not apply where the interest is not annual interest, or where the concern carries on a banking business. If tax is not deducted the concern is liable to make returns to the Inland Revenue under Section 29, Income Tax Act, 1952, of the interest so paid in excess of £15 to any person in any one year. If the hon. Member has any particular case in mind, I will be happy to consider it.