§ Mr. HOODasked the Chancellor of the Exchequer whether he proposes to include in the liability to the Corporation Profits Tax all companies incorporated in the United Kingdom whose business is entirely carried on and directed abroad and the profits of which are not assessable to Income Tax, except to the extent of dividends paid in the United Kingdom; and whether he proposes to include in the liability to such Corporation Profits Tax holding companies incorporated in the United Kingdom whose profits are derived from other companies which have already paid Income Tax in the United Kingdom, such former companies being not at present liable to again pay Income Tax in respect of the same profits?
Mr. CHAMBERLAINIt is proposed that the Corporation Profits Tax shall apply to all companies with limited liability incorporated in the United Kingdom, whether they carry on business in the United Kingdom or abroad, and whether they are only holding companies or otherwise. Provision will, however, be made to relieve from the operation of the tax profits derived from companies which have themselves been subject to the tax.