§ 66. Mr. Erroll
asked the Chancellor of the Exchequer if he can estimate what percentage of articles, made from cotton or wool cloth which is free of Purchase Tax, attracts Purchase Tax when made up.
§ Mr. R. A. Butler
I regret there is no available information on which such an estimate could be made.
Name of Company Price paid for shares Other Financial Arrangements (1) (2) (3) 1. JOHN FOWLER & SONS (LEEDS) LTD. £45,000 paid for 20,000 £10 ordinary shares, i.e., 45s. per share. As a result of arbitration Proceedings Price was increased to 75s. per share. Further payment, including interest—£32,769. TOTAL £77,769. 1st May, 1945. Shares sold for £380,000. Before completion, by arrangements with purchasers, the 20,000 ordinary shares of £10 each were converted into 200,000 ordinary shares of £1 each, and £250,000, part of the Company's undivided profits and reserves, was capitalised into an issue to the Minister of 250,000 redeemable preference shares of £1 each. The 200,000 ordinary and 250,000 preference shares were transferred in consideration of the payment of £380,000. 2. BREN MANUFACTURING CO. LTD. £20,088 for 20,000 £1 ordinary shares. Ministry loaned the Company £50,000. June, 1945. Ministry loan capitalised into 50,000 £1 ordinary shares—70,000 shares sold for £72,500. 3. JOHN STIRK & SONS LTD.… 3,000 £1 preference shares—paid 21s. 6d. per share. 17,000 £1 ordinary shares—paid £3 5s. 0d. per share. TOTAL price paid—£57,125. As a result of arbitration proceedings the prices to be paid were increased as follows:— 1st May, 1945. Shares sold for £90,500. (Purchaser also repaid a loan of £30,000 made by the Ministry to the Company). Preference shares—to 13s. 1½d. per share. Ordinary shares—to £5 per share. Further payment, including interest £32,588. TOTAL PAYMENT—£89,713.