HC Deb 23 June 1966 vol 730 cc134-5W
Mr. Bruce-Gardyne

asked the Chancellor of the Exchequer what is his estimate of the average deduction by the Inland Revenue on every £100 of profit earned on United States investment in Great Britain prior to the application of the latest Anglo-American Double Taxation Agreement; and what will be the comparable deduction when this agreement has come into force.

Mr. MacDermot

I have not made an estimate of the average, which would depend, for example, upon the status of the investor, the value of the investment and the proportion of income distributed as dividends.

Mr. Bruce-Gardyne

asked the Chancellor of the Exchequer what he estimates will be the average percentage deduction by the United States of America from distributed profits on British investments in the United States of America, and the average percentage deduction by the United Kingdom Revenue from distributed profits on United States investments in the United Kingdom, with corporation tax at 40 per cent., under the terms of the Anglo-American Double Taxation Agreement.

Mr. MacDermot

The rate of tax chargeable on dividends under the revised United Kingdom/United States double taxation agreement will be 15 per cent, in both cases.