§ Mr. ARTHUR STRAUSSasked the Chancellor of the Exchequer whether in cases where a firm pays Income Tax on the three years' average system, and where a dissolution of partnership occurs within or after that period, he will take steps to secure that the remaining partner should not be assessable to Super-tax on the whole profits of the firm, in manner similar to his liability to Income Tax (Schedule D), but only on his individual share of the firm's profits when his individual income does not exceed £5,000, and when he cannot recover from his former partners if the dissolution took place before the Act was passed?
§ Mr. LLOYD GEORGEThe Super-tax is chargeable on the statutory income of an individual for the previous year. An individual, who in the previous year was the proprietor of a business, would be required to include in his Super-tax Return the profits of that business as assessed to Income Tax, Schedule D. The fact that in earlier years he may have been entitled to only a share of the profits cannot be taken to affect his liability in respect of the income of a year during which he was the sole proprietor.