§ MR. D. A. THOMAS
I beg to ask Mr. Chancellor of the Exchequer, if he is aware that the Revenue Authorities refuse to allow any portion of amounts paid for redemption price to be charged to profit and loss accounts; and whether he will consider the desirability of allowing a part of the redemption price to be charged against profits in case of properties of a wasting or rapidly depreciating nature, such as railway wagons?
§ THE CHANCELLOR OF THE EXCHEQUER (Sir MICHAEL HICKS BEACH,) Bristol, W.
I am not aware of the particular circumstances of the case to which the hon. Member refers, but the repayment of purchase-money by instalments appears to me to be a capital expense, and I am not prepared to alter the law so as to allow it as a deduction from profits for Income Tax purposes. As regards depreciation, I would remind the hon. Member that the law already allows the District Commissioners, if they think fit, to admit a claim for deduction in respect of repairs and depreciation by wear and tear within the year of assessment.