§ Mr. Spens
asked the Chancellor of the Exchequer whether he has yet given further consideration to the language of Section 13 (7) of the Finance (No. 2) Act, 1939, as it applies to concerns which have a low profits standard, either because they were in a developing stage or because of depression in the industry in which they are engaged, during the standard years?
§ Sir J. Simon
My hon. Friend will remember that in the course of the Finance Bill Debates I promised to consider this point. Concerns such as those to which he refers might be debarred from applying for a substituted standard to the Board of Referees under Section 13 (7) of the Finance Act because they could not show that the profit made in the standard years was less than might then have reasonably been expected. It is not my intention to debar such a concern from obtaining under that Sub-section such higher standard, not exceeding 6 per cent. on paid-up ordinary share capital, plus the fixed rate on other paid-up share capital, as the Board of Referees might think fit to allow, and I intend in next year's Finance Bill to propose an amendment of the Section to remove any doubt on the point.