HC Deb 15 July 1918 vol 108 cc703-4
54. Captain STARKEY

asked the Chancellor of the Exchequer whether firms who place money on deposit with their bankers are liable to have the interest they receive assessed for Excess Profits Tax; or whether the money placed on deposit is included in the capital of the business?

Mr. BONAR LAW

Where money which is placed on deposit at a bank will shortly be required for business purposes it is treated for Excess Profits Duty as capital employed in the business. The interest is in consequence included in the profits, but this addition is more than counterbalanced by statutory adjustments occasioned by the inclusion of the deposit in the business capital.