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The charging of personal bank interest against personal taxation was disallowed (except so far as it might have been con- nected with house or land purchase) by the socialists when they were in power. The target was company directors and others who borrowed huge sums to take up shares in anticipation of a rise expected through hard work, or, so often, inside information. Apologists for this activity maintained that it resulted inevitably from previous legisla- tion aimed at executive share-option incen- tive schemes.
There is, I am afraid to report, bad news for those who expect the Conservatives to honour their pledge on the allowance of interest against taxation quickly.
There are some very large and very new fortunes floating around in the Conservative Party at its highest level. It is unnecessary to detail the evidence to anyone who reads the papers but it is clear that not only ministers and their acolytes, who had a declared interest in some of the more dramatic adventures of takeover and City life, have benefited. There' are those—one Important man in particular—who have not had a direct connection with business, from their own choice, for a nurnber of Years since they have been dedicated to their party. 'I had good advice about my investments and they have done well', he is reported to have said. The best of luck to him and his friends. The money has been come by in the usual City way, through company promotion and stock
.market risk of a kind. Large loans were obtained from merchant bankers and brokers against the security of not much more than the shares being taken up. Appreciation occurred and principal and interest and capital gains were or will be repaid.
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