§ 111. Dame Joan Vickersasked the Chancellor of the Exchequer whether, in regard to investment trusts, it is the policy of Her Majesty's Government to charge corporation tax on United Kingdom dividends of investments which are not distributed, in view of the fact that this income will have already borne corporation tax.
§ Mr. CallaghanI cannot add to my answer of 8th December about the corporation tax.
§ Dame Joan Vickersasked the Chancellor of the Exchequer (1) whether, as a result of the new tax system, the net United Kingdom rate of tax up to which charities can claim relief will disappear;
(2) whether trading companies whose financial year ends after 5th April, 1965, will be liable to the proposed corporation tax; and, in view of the number of companies who will be publishing accounts by the autumn of 1965 who will not know at what rate to charge tax until April, 1966, if he will take steps to clarify the position regarding the form in which these companies should prepare their accounts;
(3) in view of the facts that company taxation and personal taxation are being separated and that Income Tax is only being deducted by the companies on behalf of the Inland Revenue, what is the position of non-residents not liable to United Kingdom Income Tax; and if it is his intention to replace the Income Tax deduction by withholding tax;
(4) whether he proposes to re-negotiate the present double taxation agreements with overseas countries; and what system he plans to adopt for grossing up foreign dividends, for example, as received by the private investor and by investment and unit trusts.
§ Mr. CallaghanI cannot add to my answer of 8th December about the corporation tax.