Schedule 4

Part of Finance (No. 2) Bill – in a Public Bill Committee am 6:30 pm ar 19 Hydref 2010.

Danfonwch hysbysiad imi am ddadleuon fel hyn

Photo of Justine Greening Justine Greening The Economic Secretary to the Treasury 6:30, 19 Hydref 2010

The hon. Gentleman is following a red herring—[Hon. Members: “That was this morning.”] I have obviously missed a more fun part of the Committee’s  proceedings. He is heading down a route that I do not think is productive. I can be very clear with him; he is labouring under the misunderstanding that we will treat stock dividends differently from cash dividends, but we will not. The tax on them will not be deferred, as he has in his mind, so I can correct him on that. Hopefully he can understand, as a result, that because tax will be paid on the issue of the stock dividends, just as it is treated as a cash dividend, there will be no revenue difference. I hope that that provides him with the final reassurance that he needs.