HC Deb 22 June 1953 vol 516 cc125-6W
Mr. Odey

asked the Financial Secretary to the Treasury whether he will make a statement on the incidence of the Excess Profits Levy on the accrued interest which will be included in the proposed settlement on 1st October, 1953, of outstanding claims under the Business Scheme of Part II of the War Damage Act, 1943.

Mr. Boyd-Carpenter

I am advised that for tax purposes the accrued interest will rank as income arising on the date when it becomes payable. My right hon. Friend the Chancellor of the Exchequer agrees that the Government's decision to settle outstanding claims during the present financial year should not have the effect of making this accumulated interest liable to the Excess Profits Levy. Accordingly, in agreement with my right hon. Friend the President of the Board of Trade, any corporate body that is a claimant under the scheme will be given an option and it may now elect by letter addressed to the Board of Trade Insurance and Companies Department, Lacon House, Theobalds Road, W.C.I, not later than 31st August next to have its compensation made payable with accrued interest on 1st January, 1954, instead of 1st October, 1953. Where that election is made, no part of the accrued interest will be included in computing profits for Excess Profits Levy purposes whether the corporate body makes up its annual accounts to 31st December or to another date.