Internal War Loans Belligerent Countries

March 2, 1917, under discount at the rate of 4% per annum.
Fully paid allotments were payable upon application. First
interest payment June 1, 1917 on 5% loan amounted to
£i:8s. o,d for fully-paid allotments and to us. iod for
installment allotments per £100 par value. First interest
payment April 15, 1917 on 4% loan amounted to 12s. 8d
per £100 par value for fully-paid allotments and a full six
months interest was paid October 15, 1917, on installment
allotments.
British Government Treasury Bills were accepted under
discount at 5% per annum and War Expenditure Certificates
under discount at 5}4% per annum in payment for
"Fully-Paid Allotments" provided the entire proceeds of
the Bills and Certificates were so applied. Holders of
the 4j4% War Loan, 1925-1945, of 5% Exchequer Bonds
due October 5, 1919 and 1921, of 5% Exchequer Bonds due
December 1, 1920, or of 6% Exchequer Bonds due February
16, 1920, could convert their holdings in whole or
part into this 5% Loan, 1929-1947, and of 4% Loan, 1929-
1942, as of February 16, 1917, at the rate of £105 :5s. 3d 5%
Loan 1929-1947 for each £100 converted, or 4% Loan 1929-
1942 par for par. First interest payment on the 5% and
4% Loans issued in exchange represented interest accrued
to February 16, 1917, upon old holdings to be converted
together with interest from February 16, 1917. upon new
holdings resulting from such conversion.
Fiscal Service—Principal and interest payable at the Bank
of England.
Taxation—Dividends on inscribed and registered stock of the
5% Loan payable without deduction of Income Tax, but
the income derived from such dividends is assessable to
Income Tax in the hands of the recipients at the rates
of tax appropriate to their respective incomes. Dividends
of the 4% Loan exempt from liability to assessment to
British Income Tax other than Supertax. For the purposes
of the Supertax and in computing total income for the
purpose of exemption, abatement, reduced rate of Income
Tax on earned or unearned income, etc., the income derived
from such dividends is treated as if the amount received
represented the net income after deduction of Income Tax
at the full normal rate. There is, however, no title to
repayment of Income Tax in respect of such untaxed
dividends. Principal and interest exempt from all British
taxes, present and future, if shown in the manner directed
by the Treasury, to be in the beneficial ownership of a
person who is neither domiciled nor ordinarily resident in
the United Kingdom. Dividends exempt from British In-
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