HC Deb 25 May 1916 vol 82 c2301W

asked the Chancellor of the Exchequer, whether he is aware that at a council meeting held on the 16th May, 1916, the London County Council approved a scheme which permits cinematograph halls, licensed by the council for six days in the week, to be opened for entertainments on Sunday on the terms that each licensee may retain from such Sunday receipts as private profit or gain one-seventh of the weekly expenses of his hall in respect of rent, rates, taxes, and actual out-of-pocket expenses, handing over the balance to some charitable or other organisation; and whether the total or any portion of the gross receipts taken on each Sunday will be respectively assessed to income or other tax?


The profits derived from such performances, including those devoted to charitable purposes, are assessable to Income Tax. Any excess profits that may be made would similarly be liable to Excess Profits Duty. I may add that Entertainments Duty will have to be paid on the prices of admission to these entertainments, but the duty will be repaid under Section 1 (5) of the Finance (New Duties) Act, 1916, if the Commissioners of Customs and Excise are satisfied that the whole of the net proceeds are devoted to philanthropic or charitable purposes and that the whole of the expenses do not exceed 20 per cent. of the receipts.

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