HC Deb 17 October 1939 vol 352 c679
51. Mr. Stokes

asked the Chancellor of the Exchequer what special steps he proposes to take to tax the war profits of those people who, between 18th August and 6th October, made an average extra profit of £370,000 per week on Treasury Bills?

Sir J. Simon

The discount receivable on Treasury Bills is chargeable to Income Tax, and where it is received by a concern whose trade or business is of such a character that income from investments falls to be treated as a trading receipt, it forms part of the profit of the concern for the purposes of the National Defence Contribution and the Excess Profits Tax.

Mr. Stokes

In view of the repeated statements made by the Prime Minister that there will be no profiteering in this war, does the Chancellor really think that it is fair to allow moneylenders to get away with three or four times the profit which they did immediately before the outbreak of war?

Sir J. Simon

The considerations which govern the Bank rate are considerations which I stated very clearly to the House in a recent Debate. I would refer the hon. Member to what I then said.

Mr. Craven-Ellis

Can my right hon. friend say whether transactions out of which such profits arise will come within the scope of the Prices of Goods Bill?

Sir J. Simon

I would not have thought that they were included under the heading of "goods."

Sir Herbert Williams

Has not the recent rate of discount on Treasury Bills been substantially lower than that which prevailed when the last Labour Government was in office?