§ Captain W. BENNasked the Financial Secretary to the Treasury whether, when a holding of War Loan has been treated for purposes of Excess Profits Duty as an asset employed in the business, a deduction is allowable in the computation of profits in respect of the net amount of any depreciation in value arising in the period during which the War Loan was treated as an asset so employed; and, if so, whether the depreciation in value which is referred to is the difference between the amount subscribed for the War Loan and the amount realised there for or, if not realised, the difference between the amount subscribed and the value at the close of the last accounting period?
163W
Mr. YOUNGThe answer to the first part of the question is in the affirmative. Assuming that the War Loan is regarded for purposes of the Excess Profits Duty as part of the capital employed in the tax payer's business throughout the accounting periods during which it is held by him, the depreciation would, subject to Clause 23 of the Finance Bill becoming law, normally be measured by the difference between the cost price and sale price if sold before the 31st December, 1921, or between the cost price and the value at the 31st December, 1921, if held until that date.