ENGLISH INCOME TAX.

Auckland Star, Volume LXIII, Issue 239, 8 October 1932, Page 4

ENGLISH INCOME TAX.

POSITION OF CONVERSION LOAN. • Regarding incomc tax on the British loan that was recently converted, Mr. W. R. Fairbrother, Income Tax Consultant, London, writes as follows, under date August 4: — "Possibly a large number of your readers ■wjill be experiencing some doubt as to the income tax position with regard to the interest on the present 5 per cent war loan which is being converted into a 3Va per cent investment. On the normal basis of assessment on the preceding year's results, the assessment for 1933-34 would obviously be greater than the actual income arising from the security in that year. Questions and answers in the House of Commons make it clear that it is proposed to treat the 3% per cent loan as a new investment, which will mean ,that for 1933-34 the assessment should be based upon the actual interest of that year. In the case of residents out of the United Kingdom who are entitled to exemption from income tax in respect of this loan, the point to notice is that when the assessment is properly adjusted their total income will be less than would be the case if the normal assessments were to be operative, and thus tend to increase the repayment obtainable from other British securities."