HC Deb 26 July 1916 vol 84 cc1675-6
39. Mr. ROBINSON

asked the Chancellor of the Exchequer whether, in the assessment for Income Tax, bankers are allowed to deduct sums deemed to have been lost by reason of depreciation of securities; and, if so, whether banks are in this respect treated differently to other trading concerns?

Mr. McKENNA

If a bank or other trading concern varies its investments and turns them to account as an essential feature of the business carried on, any profit or loss arising on the realisation of such investments is taken into account in computing liability to Income Tax. Mere appreciation or depreciation in the quoted values of investments which have not been realised is not taken into account.