Clause 19. — (Interest Payable Abroad to Be Deductible in Computing Profits in Certain Cases.)

Part of Orders of the Day — Finance Bill – in the House of Commons at 12:00 am on 23 June 1949.

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Photo of Mr Selwyn Lloyd Mr Selwyn Lloyd , Wirral 12:00, 23 June 1949

Supposing capital which forms a loan in respect of which interest is paid is brought into a business, not as part of the partnership capital, but as a temporary loan from a bank or other person to tide over a temporary difficulty, that is precisely analogous with the rent on the business. I agree that if it is part of the partnership capital, it should not be entitled to exemption, but if the partner has to act as a banker to tide over a temporary difficulty, it seems quite unreasonable that interest on such a loan should not be regarded as an expense of the partnership. I am told that this is a point of some substance and I ask that it be given sympathetic consideration.