Part of the debate – in the House of Commons at 12:00 am on 5 July 1965.
The right hon. Gentleman keeps referring to this tax problem, and he really must remember that in the original set of Amendments we specifically moved an Amendment that:
Nothing in this section shall exempt a statutory water undertaker from liability to income tax under section 43 of this Act".
There is no assumption on this side at all that had there not been a Corporation Tax the ability to deduct tax from the dividend would have been continued.