§ Mr RIDSDALE
asked the Chancellor of the Exchequer what securities, other than British, if in the hands of non-residents in the United Kingdom, will be liable to Income Tax when Clause 71, Sub-section (2), of the Finance Bill, 1909, becomes law?
§ Mr. HOBHOUSE
If my hon. Friend has in mind any particular class of securities other than those directly referred to in Clause 71 (2) of the Finance Bill, I shall be happy to give him any information on receiving the necessary particulars.
Sir SEYMOUR KING
asked the Chancellor of the Exchequer whether, under Clause 71, Sub-section (2), of the Finance Bill, 1909, British non-residents who hold Foreign securities chargeable to Income Tax under Schedule C will, for the first time, be relieved of the payment of Income Tax on the dividends arising therefrom; and, if so, for what reason he offers this premium on the exchange of British Government and other securities into Foreign investments?
§ Mr. LLOYD-GEORGE
The answer to the first part of the question is in the affirmative. As regards the second part of the question, the Sub-clause referred to merely places on a legal footing and extends to British subjects resident out of the United Kingdom an exemption that in administration has been allowed to foreigners not residing in the United Kingdom ever since 1842. It is not, I think, desirable that an exemption of such long standing should be withdrawn, or, on the other hand, that the British subject resident out of the United Kingdom should remain at a disadvantage as compared with the foreigner.