§ 114. Mr. Bruce-Gardyne
asked the Chancellor of the Exchequer what is the real net return on a security yielding 9 per cent. gross, on the basis that the rate of tax is 8s. 3d. in the £ sterling and the maintenance of capital values occurs out of after-tax interest with inflation at 4.3 per cent.
§ Mr. Taverne
About three-quarters of one per cent. on the basis of a flat yield on a fixed interest marketable security and assuming that interest is re-invested in the same security at the same yield.