§ Amendment proposed: In page 36, line 43, at end, add:
(5) Notwithstanding the provisions of subsection (3) of this section, this Part of this Act does not apply to a trade or business carried on by a body corporate ordinarily resident in the United Kingdom if and to the extent that the trade or business consists of the winning or production of raw materials.
§ Question again proposed, "That those words be there added."
§ The Solicitor-GeneralWe have, of course, also considered the terms of the Amendment tabled by my hon. Friend the Member for Altrincham and Sale (Mr. Erroll) on which he spoke. We really do not think it possible to make an exception for the category to which he referred. He will appreciate, of course, that the Excess Profits Levy will only apply if the profits of the statutory company have increased. They will receive the benefits 717 of the over-riding maximum of 10 per cent. if they are overseas; though it is by no means clear from the terms of the Amendment whether or not it was to apply to a company inside the United Kingdom.
In view of that allowance and the allowance on undistributed profits of 12 per cent., my hon. Friend will appreciate that the statutory company would have to have a considerable growth in their profits before they became liable to the levy. In those circumstances, we do not consider that there is a case made out here for exceptional treatment, and I am sorry that I have to disappoint my hon. Friend.
§ Sir P. SpensIn view of what the Solicitor-General has said, I beg to ask leave to withdraw the Amendment.
§ Amendment, by leave, withdrawn.
§ Clause ordered to stand part of the Bill.