Reference: P.S.1199/50
Mr Webb.
Oxford University Press
I have discussed this with Sir Clifford Wakeley.
It seems clear that we must oppose any claim by the Oxford University Press for relief from Income Tax on its profits under Section 24, Finance Act, 1927. On the information available they are almost exactly in the same position as the Cambridge University Press, and they must be to a large extent in competition with outside commercial publishing firms.
This being so, it is not for us to advise them as to whether they can a rearrange their affairs in any way to get exemption. The idea in their minds was that they might split the job into (a) learned publications, (b) other, and get exemption on (a) only. This would not seem likely to help them any way because they presumably make a loss, or very little profit, or on their learned publications, and their profit must be mainly on their other work.
On the other hand, there does not seem to be any clear reason why the O.U.P. should not get charity relief on their investment income (Section 37, Income Tax Act, 1918) and on Schedule A (Section 30, Finance Act, 1921). It appears from the papers that the Cambridge Press enjoys both these exemptions.
Will you please arrange for these points to be examined further and let me know what, if anything, I could say to the Oxford people about them.