Clause 27. — (Effect of Capitalisation of Profits on Rate of Profits Tax.)

Part of the debate – in the House of Commons at 12:00 am on 11 June 1951.

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They may say it is not worth it because, if they make any profits, it will make it impossible for them to distribute the compensation stock which may not be needed in their new activities because that would attract Profits Tax. Surely the Attorney-General will agree this is not a distribution of past profits. It is a distribution of capital forced upon the company, not as a decision of that board of directors, but primarily because the Government took the step of nationalising the coal industry. Flowing from those decisions we ought to make an exception of this. I do not know what my hon. Friends will do, but I do not think we can let the Clause go unless we get some assurance.