Company Amalgamations (Stamp Duties).

Oral Answers to Questions — Government Departments. – in the House of Commons on 22nd March 1927.

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Photo of Sir Harry Brittain Sir Harry Brittain , Acton

55.

asked the Chancellor of the Exchequer whether he is aware that during 1926 a number of limited companies were registered with the expressed object of effecting amalgamation between companies conducting similar businesses, and that such registrations involved in effect the payment twice over of the capital duty of £1 per £100 upon the issued capital of the constituent companies apart from the conveyance duty: and, in view of the fact that amalgamations beneficial to industry are often prevented by reason of the high duties payable, if he is prepared to consider in his Budget an exemption from stamp duties in all cases where amalgamations are effected and the members of the new company are identical with the members of the constituent companies?

Photo of Mr Winston Churchill Mr Winston Churchill , Epping

My hon. Friend will not expect me in a matter of this kind either to discuss the assumption which he makes or to anticipate the Budget statement.

Photo of Sir Harry Brittain Sir Harry Brittain , Acton

Is the right hon. Gentleman aware that the Company Law Amendment Committee describes this double duty as an unjustifiable burden on industry, and that is acknowledged in the case of recent coal-mining amalgamations?

Photo of Colonel Josiah Wedgwood Colonel Josiah Wedgwood , Newcastle-under-Lyme

Does the Chancellor of the Exchequer agree that amalgamations are beneficial, particularly to the consumer?

Photo of Mr Winston Churchill Mr Winston Churchill , Epping

The right hon. Gentleman had better ask the right hon. Gentleman the Member for Colne Valley (Mr. Snowden).

Photo of Sir Robert Thomas Sir Robert Thomas , Anglesey

Are not these amalgamations brought about mainly for the purpose of escaping taxation, and will the right hon. Gentleman put every obstacle in the way in order to prevent them?

Photo of Mr Winston Churchill Mr Winston Churchill , Epping

I do not think that represents either the facts or the cause.