Schedule 22
Finance Bill
9:30 am
Mark Hoban (Shadow Minister, Treasury; Fareham, Conservative)
I am grateful for the Minister’s comments about the compliance with EU law, but does he believe that, in the example that I gave, where a UK bank officer reads as a retail investment a debt security that redeems at any time after, say, a minimum holding period and that return is subject to the movements of the FTSE, for example, which is not dissimilar to condition C in new section 40B, that return would be treated as income? The industry believes that that would be treated as a capital return and taxed at 18 per cent., not at the investor’s highest rate of income tax.