§ Mr. BETTERTONasked the Chancellor of the Exchequer whether his attention has been called to the hardship inflicted on the ex-service man who has started business since the War and who is compelled to pay excess profits duty on the whole of the profit earned, less £200; and whether he will consider the initiation of such amendment in the existing law as will alleviate this hardship cither by allowing an assessment on a three years' average or otherwise?
Mr. CHAMBERLAINAt the present stage I cannot see my way to vary the provisions of the existing law as my hon. Friend suggests. In the case of a new business started since the War, whether by an ex-service man or by any other individual, the pre-War standard would, under the general provisions of the excess profits duty, normally be computed by reference to the pre-War earnings of the taxpayer, whether he was before the War in business on his own account or in employment, and where the profits and the pre-War standard are small, the allowance of £200 would be supplemented by the additional allowance under Section 26 (4) of the Finance Act, 1917.