HC Deb 15 October 1940 vol 365 cc601-2
58. Mr. Leslie Boyce

asked the Chancellor of the Exchequer whether, in order to help the National Savings campaign, he is willing to lay down the principle that an investment by a company in National War Bonds shall not have the effect of increasing or decreasing the amount of Excess Profits Tax payable by that company?

Sir K. Wood

An investment by a trading concern in National War Bonds of any funds available for investment will not ordinarily affect the Excess Profits Tax liability of the concern. The position in regard to this matter was fully explained in the reply which I gave on 22nd August to a Question by my hon. and learned Friend the Member for Ashford (Mr. Spens) on this subject. I am sending my hon. Friend a copy of this Question and Answer.

Mr. Boyce

As in a number of cases it does affect the basis on which this tax is payable, will my right hon. Friend agree to the principle being laid down that a company investing in National War Bonds is not to be, as a result, in a better or worse position?

Sir K. Wood

I think I will confine myself to the answer given on 22nd August, and perhaps my hon. Friend will examine it.

Mr. Boyce

In view of the utmost importance of encouraging the National Savings Campaign in every way, is my right hon. Friend willing to receive and consider further representations on this subject?

Sir K. Wood

Certainly, Sir.