§ 52. Mr. Stokes
asked the Chancellor of the Exchequer why increased rents, since the commencement of the war, have not been treated as subject to 100 per cent. Excess Profits Tax?
§ Sir K. Wood
The Excess Profits Tax is chargeable on the excess profits arising from a trade or business. I may point out that where the holding of property constitutes the business of a company, the rents would come under charge to the existing E.P.T.
§ Mr. Stokes
Is the Chancellor aware that a farm in Berwickshire let shortly before the war for £200 has been re-let since the start of the war at £400, and is it not clear, therefore, that the subsidy gets into the pockets of the landlord, and ought not any such increase of rent to be subject to the 100 per cent. Excess Profits Tax?