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This is from Tank encyclopaedia via a former employee at Bovington re the 2pdr
The High-Explosive Controversy
It has long been thought that the 2-Pounder gun was never equipped with High-Explosive (HE) shells, this is not the case however. HE was available to the 2-Pounder gun, but British military thinking was that firing Explosive Shells was the job of the Artillery. As such, towed 2-Pounder crews deployed by the Royal Artillery were equipped with HE ammunition, but Tanks, designed for infantry support such as the Matilda II, were not equipped with them.
The 2-pounder actually had two types of exploding shell produced for it, namely the 1934 – 1937 pattern APHE shell and the HE fragmentation shell. The shell weighed 1.87 Pounds and used the Hotchkiss base fuse Mark IV. The shell is a blunt-nosed serrated cylinder made of cast iron designed to strike the ground and pitch back into the air then explode, scattering fragments into enemy infantry and animals such as horses.
This shell was used by tanks of the BEF in France 1940 but although available in North Africa, was out of favor with crews preferring to stock their ammo racks with AP ammunition. However, anti-tank units always carried a supply for deterring infantry assaults against them.
The 1934 -1937 pattern APHE shell was produced before trials of the 2 Pounder gun took place but failed to meet the War Department’s specifications of being able to have a 70% (7 in 10) probability of penetrating 14mm. of vertical face hardened rolled homogeneous armor plate (Vickers “Vibrax” at a range of 500 yards.
In tests the Hotchkiss Mark.IV. base mounted fuse either fell out in the barrel during firing or fell out when the shell hit the test target despite the actual unexploded shell actually penetrating. In other instances, when the fuse stated in the shell would explode with no or partial penetration.
Because of this, the British Army elected to dispense with APHE ammunition from 1937 to the present day. Maximum penetration was 48mm. at 100 yards versus vertical FHRHA as live APHE and 59mm. at 100 yards versus vertical FHRHA fired inert/unfilled. 562,000 were produced between 1934 and 1937, none were fired in combat or even issued. Instead, stocks were used up on firing ranges in the UK for training and issued to home defense anti-tank units during 1940 after Dunkirk.