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Napier Company Assets (Purchase)

Volume 387: debated on Tuesday 16 March 1943

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asked the Chancellor of the Exchequer what sums of money were paid to the Napier Company in connection with the recent transaction with the English Electric Company; for what purpose and on what grounds the Treasury approved the transaction; and whether sums paid to retiring directors as compensation are subject to tax?

As was announced at the time, the Minister of Aircraft Production undertook, subject to the inter-company arrangements being concluded, to purchase for £750,000 certain fixed assets previously acquired by the Napier Company for the purpose of its war expansion programme. With regard to the second part of the Question, the Treasury approved the transaction and gave the necessary consent to the issue of shares by the English Electric Company, on the ground that essential production would thereby be benefitted. The answer to the last part of the Question would depend upon the facts of the particular case, as to which I have no knowledge, but I must point out that I could not, in any event, give information regarding the taxation affairs of particular taxpayers.