§ 41. Mr. Solomonsasked the Chancellor of the Exchequer what representations have been received from local authorities, or their appropriate associations, asking for steps to be taken to enable interest to be paid to lenders without deduction of Income Tax on amounts loaned to local authorities of up to £500; and what action he proposes to take.
§ Mr. CallaghanI understand that this point has been raised several times in recent years by local authority associations and that it has been explained to them that deduction of tax at source is a basic principle of the Income Tax system.