HC Deb 23 October 1918 vol 110 cc777-8
63. Mr. CURRIE

asked the Chancellor of the Exchequer whether, for purposes of assessment to Excess Profits Duty, sums contributed towards the endowment of a chair in Edinburgh University as part of the institution of a degree in commerce (B.Com) will be treated in the same way as sums devoted to the promotion of research and allowed as a proper deduction in accounts?


Sums expended for research are allowable as deductions in a trader's accounts for the purposes of Excess Profits Duty when they represent the cost to the trader of carrying on research work for the purpose of his own business either directly or through the medium of an association of traders who combine for the purpose.

Sums contributed towards the endowment of a chair at a university are on an entirely different footing. They do not represent annual working expenses, nor are they wholly and exclusively expended for the purpose of the trade.

65. Sir J. D. REES

asked the Chancellor of the Exchequer whether, in respect of taxation for excess profits, capital invested in War Bonds is treated as employed in the business in cases in which such capital would have been so treated had it remained on deposit at a bank?


The answer is in the affirmative. This is the test which has throughout been applied to dealing with cases in which this question arises.

71. Colonel THORNE

asked the Chancellor of the Exchequer if he can state the amount the Excess Profits Tax was estimated to realise budgeted for, and the total amount received by the Exchequer for the financial years ending 1915–16, 1916–17, and 1917–18?


The particulars of the Excess Profits Duty (and Munitions Exchequer Payments) are as follows:—

Year. Budget Estimate. Exchequer Receipt.
£ £
1915–16 6,000,000 140,000
1916–17 86,000,000 139,920,000
1917–18 200,000,000 220,214,000
The smallness of the yield in 1915–16 was due to the late date at which the Finance (No. 2) Act, 1915, was eventually passed into law, and to the length of time allowed under it for rendering returns and paying duty.


Has any progress been made with the adjustment between the Dominions Treasuries and ours with regard to excess profits?


I know that steps have been taken, but I do not know the result. If the hon. Member will put down a question I will enquire.