CLAUSE 25.—(Relief in respect of losses on transactions profits of which would be chargeable under Case VI, Schedule D). (Hansard, 30 June 1927)

§ Sir H. BUCKINGHAM
I beg to move, in page 12, line 5, to leave out the word "similar."
This Clause seeks to give effect to a purpose which was the subject of an Amendment which I put down last year. At that time the Government were good enough to say they would consider that matter, and I must thank them for the concession they have already made by inserting this Clause into the Bill. In my view, however, the concession does not go quite far enough. The whole object of the suggestion I made was that any casual loss in one year might be set off against a casual profit, that is, any casual loss which comes under the category described in Case VI should be set off against any casual profit which can be assessed under Case VI. In the Clause, however, only a casual loss of a "similar nature" can be set off against a casual profit. If a man makes a profit on, say, underwriting in any year he will be taxed on that profit, and if he makes a loss in the same year on something financial of the same character he will be able to set off the loss against the profit. I think any casual loss ought to be set off if it comes under the description given in Case VI, and therefore I am moving to leave out the word "similar."

§ Mr. GILLETT
Would the Attorney-General kindly inform us what the word "similar" means? There was a case in the Courts recently dealing with a firm or individual in Ireland who bought a stock of linen in the early days of the War and made a very large profit, and became liable to taxation under Case VI. Would this provision in regard to setting 745 off a loss apply only if that individual were to deal in linen, or would the word "similar" mean anything that came under Case VI?

§ The ATTORNEY-GENERAL
The Government have given consideration to the point which has been raised by my hon. Friend who moved this Amendment, and they are willing to accept it and to leave out the word "similar" Perhaps hon. Members opposite will not ask me to explain what it means at this stage. The only point to which I would like to call the attention of the Committee is this, that if we leave out the word in line 5 we shall have to leave it out in three other places, lines 10, 16 and 19 and we shall have to put in the words "under Case VI" after the word "assessed," in line 19. I will move these Amendments when the time comes.

§ Mr. GILLETT
May I ask the Attorney-General if I am right in understanding in the case I mentioned that, as he has accepted the Amendment, any loss under the Schedule might be put against the profit?

§ The ATTORNEY-GENERAL
Any loss which arose in a transaction which if it had resulted in a profit would have been taxed under Case VI will be set-off, after this Amendment, against profit that is taxable under Case VI.