§ Mr. Sillarsasked the Chancellor of the Exchequer what is the total amount of 498W interest that will require payment on the 10 per cent. Exchequer Stock, issued on 16th June, in a single full year; what is the total amount of interest to which the Government are committed during the lifetime of this issue; and if he will provide figures on the same basis for the subsequent 12½ per cent. issue of Exchequer Stock.
§ Mr. Denzil DaviesThe interest payable in a full year on 10 per cent. Exchequer Stock 1983 is £90 million less an amount of approximately £30,600,000 being income tax at the current rate of 34 per cent. deducted from interest payments of more than £5 per annum.
The total amount of interest payable during the lifetime of this stock is £491,168,000 less income tax deducted from interest payments of more than £5 per annum.
I have taken the reference in the last part of the question to be to the issue of 12 per cent. Exchequer Stock 2013-2017. The interest payable in a full year is £120 million less an amount of approximately £40,800,000 being income tax at the current rate of 34 per cent. deducted from interest payments of more than £5 per annum.
§ Mr. Sillarsasked the Chancellor of the Exchequer what a person taking up £20,000 of the 10 per cent. Exchequer Stock issue of 16th June would actually pay; and what would be his income per year from interest.
§ Mr. Denzil DaviesA person taking up £20,000 nominal of 10 per cent. Exchequer Stock 1983 would pay £19,000 as follows:
- £3,000 on application on 15th June 1978.
- £6,000 on 7th July 1978.
- £10,000 on 28th July 1978.
His income per year would be £2,000 minus the sum of £680, representing income tax at the current rate of 34 per cent.