Requisitioned Securities.

Oral Answers to Questions — National Finance. – in the House of Commons on 19th March 1942.

Alert me about debates like this

Photo of Sir John Mellor Sir John Mellor , Tamworth

asked the Chancellor of the Exchequer what rate of interest is assumed in arriving at the price to be paid for securities subject to an acquisition order, when allowance is made for the fact that a minimum period of eight weeks elapses between the date of the order and payment; whether the amount to be added to the market price at the date of the order is calculated after deduction of Income Tax; and whether recipients are authorised to treat this amount as income taxed at source?

Photo of Sir Kingsley Wood Sir Kingsley Wood , Woolwich West

The allowance made is based on a rate of 2½ per cent. per annum. The payment is a single capital payment, and no question arises of any part of it constituting income taxed at source.

Photo of Sir John Mellor Sir John Mellor , Tamworth

As this is described in the official circular as an allowance made in respect of postponement, ought not trustees to be entitled to treat this as income? Otherwise, the beneficiaries lose income for eight weeks.

Photo of Sir Kingsley Wood Sir Kingsley Wood , Woolwich West

The position is as I have stated it. The payment is a single capital payment.

Photo of Sir John Mellor Sir John Mellor , Tamworth

Will the Chancellor of the Exchequer apply his mind to that perfectly simple and straightforward point?