Major BARNESasked the Chancellor of the Exchequer if the right of recovery of losses on the three years' average will be on the 80 per cent. basis for a period of two years, according to the statement made by the Inland Revenue prior to the revision of the Excess Profits Duty?
Mr. CHAMBERLAINI assume that the hon. and gallant Member is referring to the promise made by my predecessor that losses arising within two years of the termination of the War on realisation of trading stocks held at the end of the last accounting period for Excess Profits Duty should be taken into account in the computation of liability for the last accounting period for the purposes of that duty. The duty upon any excess profit, so computed, arising in the last accounting period will be charged at the rate in force for that period. Similarly if in the last accounting period there is a deficiency of profits below the pre-war standard, any relief to which the taxpayer may be entitled on that account under the general principles of the Excess Profits Duty will be a percentage of the deficiency calculated at a rate represented by the rate of duty in force for that period. What this rate may be I am not, of course. at the present time in a position to state..