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Minor Taxation Proposals

Volume 486: debated on Tuesday 10 April 1951

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Before I come to my other major taxation proposals, I can at this point in the traditional way conveniently refer to a number of minor and, I believe, uncontroversial or relatively uncontroversial matters on which Resolutions will be tabled.

Following my predecessor's announcement of last July, I propose to give statutory effect to the special Income Tax arrangement with building societies. There will also be Resolutions dealing with the taxation of investment income from new sources, and to prevent claims to re-payment of Estate Duty paid in accordance with the view of the law taken at the time payment was made. Other Resolutions will provide for validation of long-standing practice, which is found to be at variance with the law, in regard to three matters: the exemption from Estate Duty of certain Government securities held by persons domiciled and ordinarily resident abroad, the deduction of tax by paying agents from dividends paid by certain companies outside this country, and the taxation of persons employed in this country by Commonwealth Governments in trading or business undertakings.

I propose to continue for a further three years the key industry duty which would otherwise come to an end next August; to implement the recent trade agreement with Pakistan and to provide, in accordance with the Convention on the Valuation of Goods for Customs purposes, which was signed on behalf of His Majesty's Government on 21st February last, a new definition of value for Customs purposes. We shall also put an end to some tax evasion by extending as from tomorrow the Excise duty on mechanical lighters to include the principal parts of certain gas lighters and thus prevent people avoiding duty by offering for sale complete sets of these parts, which are ostensibly for replacement purposes, but which can easily be assembled into a complete lighter.