§ MR. GEORGE FABER (York)I beg to ask Mr. Chancellor of the Exchequer whether in view of the fact that the enactment of a time limit in the Licensing Bill involves an insurance against its termination, it is proposed to levy income-tax both on the profits of licensed property and also upon the sinking fund which may be provided out of such profits as an insurance against the time limit, or whether the income-tax charged and paid on the sinking fund may be deducted from the income-tax charged on the profits.
§ MR. ASQUITHThe whole of the profits of a business are under the Income-Tax Acts assessable to income-tax, without regard to the fact that a portion of them may be used for the purpose of establishing a sinking fund to replace wasting assets. The special circumstances, however, of the present case shall be given very full consideration, though I am not in a position to pledge myself that it will be found possible to make an exception to the general and long established practice which I have explained. 1103 Apart from the assessment made on the profits of the business as a whole, no charge would be made on any portion of such profits which may be set aside for the purpose of a sinking fund.
§ MR. SLOANWhen does the right hon. Gentleman propose to take the Second Reading of the Licensing Bill?
§ MR. ASQUITHI am not yet in a position to make a statement.
§ MR. ASQUITHYes; I have already said so.