PROFITS TAX

Evening Post, Volume CXXIII, Issue 142, 17 June 1937, Page 9

PROFITS TAX

NEW BRITISH PROPOSAL

UP TO £2000 EXEMPT

RELIEF IN SPECIAL

AREAS

(British OfUclal Wireless.)

(Received June 17, 12.30 p.m.)

RUGBY, .Tune 16.

The terms of the new profits lax .a. iaktj the place of the national ''efence contribution proposed in the iSudget and later withdrawn were issued tonight as a While Paper, and the necessary ways and means resolution will be moved by the Chancellor of the Exchequer on Monday.

A tax of 5 per cent, for companies and .4 per cent, for businesses carried on by individuals will be charged on profits arising in the five years' period from April last. The tax will not' apply to professions or offices or employments.

Subject to necessary adaptation, profits will be determined on the same lines as for the purposes of income tax.

Tax will not be chargeable when profits do not exceed £2000. Where profits exceed that figure but do not exceed £12,000 an abatement will be allowed of one-fifth of the amount by which the profits fall short of £12,000.

Provision will be made for remission of tax in whole or in part in eases where the commissioners for the special areas certify that it is expedient, for the purpose of establishing industrial undertakings in those areas, that relief from the tax should be given...

The tax will be deducted in computing profits of trade or business for purposes of income tax. No calculation, or capital will be necessary for any purpose connected with the tax.

It is estimated that in a full year the tax may be expected to produce £25,000,000.