77. Lieut.-Colonel A. MURRAYasked the Chancellor of the Exchequer whether he is aware of the encouragement given in the United States of America to schemes of industrial welfare by the practice of charging to trading account and exempting from taxation expenditure incurred for the purpose of promoting social education, housing, and physical training; and whether, with a view to the encouragement of industrial welfare schemes in this country, he will consider the advisability of exempting from Income Tax any sums which employers may set aside for the provision of similar benefits for their workers?
§ The CHANCELLOR of the EXCHEQUER (Mr. Chamberlain)Under British law current expenditure by employers for the benefit of their workers is allowed as an expense in the computation of the employers' profits for Income Tax purposes; for example, an employer's contribution towards the upkeep and maintenance of a gymnasium, a refreshment room, a recreation ground for his work-people, or the salary paid by him for the services of a welfare superintendent, would be allowable.
1624 Expenditure of a capital character—for example, the cost of erecting a gymnasium or the purchase of a recreation ground—would not, of course, he advisable as a deduction. I am not aware that it is the case that more favourable treatment is given to taxpayers in this respect in the United States.