HC Deb 28 November 1945 vol 416 cc1427-9

Motion made, and Question proposed, "That the Clause stand part of the Bill."

Mr. Walter Fletcher (Bury)

May I intervene with a point which I think will have the sympathy of everybody in the House? It refers to the great difficulty which I as a new Member, and I think many other Members, have in understanding some parts of this Bill. After the great day of the new era dawned at the beginning of July, we expected one of the benefits which would result would undoubtedly be that the clear light of Socialistic thought would translate itself into very simple language in every Act and Bill brought forward. The Chancellor, noted, I think, for his great simplicity and also for his sympathy with hon. Members on this side of the Committee, and for his vicarious generosity in respect of their incomes, might have devised something more easy to understand than this Clause.

I do not think that the stock objections to my asking for an explanation, which have come forward on nearly every occasion from the Government, apply on this occasion. I do not think that to ask for the information is running a risk of inflation or that hon. Members on the other side of the Committee have a mandate to put this Clause in a particular form.

So much for the dream, and now let us come to the business. I would like an explanation of what, in simple language, one with some intelligence like myself can understand this to mean: (2) Notwithstanding anything in Subsection (2) of Section fifteen of the said Act, a deficiency of profits occurring in a chargeable accounting period to which Subsection (1) of this Section applies shall first be applied so as to reduce profits chargeable to tax arising in another chargeable accounting period to which the said Subsection (1) applies, and a deficiency of profits occurring in a chargeable accounting period to which the said Subsection (1) does not apply shall first be applied so as to reduce profits chargeable to tax arising in another chargeable accounting period to which the said Subsection (1) does not apply; and where owing to an insufficiency of profits against which the deficiency can be. set off for, chargeable accounting periods to which the said Subsection (1) applies or, as the case may be, does not apply, the whole or any part of a deficiency is applied otherwise than as aforesaid — Thank goodness.

Mr. Mikardo (Reading)

It is perfectly clear.

Mr. Fletcher

When I sit down, I shall await instruction from the other side of the Committee, where hon. Members ap- pear to understand this. One of the benefits which I look forward to next April is a real attempt to put forward a Finance Bill that can be understood.

Mr. Glenvil Hall

I think the whole Committee will share with the hon. Member for Bury (Mr. W. Fletcher)the view that it would be nice, if that were possible, to try to get the language of these Bills a little simpler. The trouble is, that although we have got a Labour Government in office, they cannot do everything at once and we must look forward to a codification and simplification of our Income Tax law at some future time when, perhaps, the pressure of legislation is not quite what it is now. The explanation of the Subsection to which the hon. Member has referred is that the Excess Profits Tax has been levied both at the 100 per cent. rate and at the 60 per cent. rate, and it simply means that the deficiencies which come forward for rebate and for allowances should, first of all, have reference to the 60 per cent. rate, and then as and when that is exhausted, recourse can be had to the 100 per cent. rate. That is all that it means, no more and no less.

Question put, and agreed to.

Clause ordered to stand part of the Bill.