Reference: P.S.1199/50
Oxford University Press
(1) Mr Booth
(2) Private Secretary
(1) The question of the taxation of the profits of the Oxford University Press was considered fully in 1944 and the papers (P.S. 1496/44) review the arguments for and against allowing exemption. I attach a spare copy of the report made by this Branch on that occasion. There have been no developments since 1944.
(2) The history of this question is briefly as follows:-
(i) In 1921 the Cambridge University Press claimed exemption from tax in respect of rents and dividends (Income Tax Act, 1918, Section 37(1)(a) and (b)) and property which it occupied (Finance Act, 1921, Section 30(1)(a)). It was decided that the Press was an integral part of the University and that the conditions of these Sections were met. Exemption from Schedule A tax is, therefore, allowed(ii) On the occasion of the 1927 Finance Act a brief investigation was made to ascertain whether the profits at the University Presses would be exempt under Section 24. No approach was made to the Universities. It was thought improbable that the profits would be exempt under this section (T.1128/11/27).
(iii) In 1929 Messrs Price Waterhouse made a tentative approach to the District Inspector, City 15th District, about the exemption of the Oxford University Press profits but the claim was not pressed.
(iv) In 1939 the Cambridge University Press made its first specific claim for exemption under Finance Act, 1927, Section 24. The claim was refused by the Board and by the Special Commissioners on Appeal (T.1085/8/40).
(v) In 1941 the Cambridge University Press claimed exemption from W.D.C. under section 37(1) of the War Damage Act, 1941. The War Damage Commission decided that the proprietary interest in the University Press premises was held for the advancement of education and that the premises were used for or in connection with the carrying out of that purpose and not otherwise - reference W.D.C. 598/1941.
(vi) In 1944, as already mentioned, the Vice-Chancellor of Oxford University submitted a Memorandum on the subject and the minutes on P.S. 1496/44 followed.
(3) I attach the Charity Division papers Cambridge University Press X. 36127 and Oxford University Press C. R. 48909.