§ Rules 6 and 7 of Cases I and II of Schedule D (which provides in connection with the charge to Income Tax under that 467 Schedule of the profits or gains of a trade for the allowance of deductions in respect of the wear and tear of machinery and plant and in respect of expenses incurred in. replacing obsolete machinery or plant) shall apply as if references in those rules to the profits or gains of a trade included references to the profits or gains, whether assessable under Schedule D or otherwise, of a profession, employment, vocation, or office, and, where they are ascertained otherwise than by reference to assessable value, to the profits or gains arising from the occupation of lands, including woodland, and in relation to profits or gains assessable under some schedule other than Schedule D as If the provisions of the said rules were applicable to the tax under that other schedule.
§ Provided that—
- (i) Where the profits or gains are not assessed under Schedule D the powers of the additional Commissioners, under paragraph (4) of the said Rule 6, may be exercised by the General Commissioners; and
- (ii) in the case of a claim for the allowance of a deduction for wear and tear in any year from the profits or gains arising to any person from the occupation of lands, including woodlands, the appropriate deduction for wear and tear shall, for the purposes of paragraph (6) of the said Rule 6, be deemed to have been allowed for any previous year for which profits or gains arising to that person from the occupation of lands, including woodlands, were determined by reference to assessable value.—[Lieut.-Colonel Fremantle.]
§ Brought up, and read a First time.
§ Motion made, and Question proposed, "That the Clause be read a Second time."—[Lieut.-Colonel Fremantle.]
The hon. and gallant Member has put down this New Clause after consultation with the Treasury, and it carries out the recommendations of the Royal Commission and extends the Income Tax allowance for wear and tear to plant and machinery, an allowance which has long been enjoyed by traders, to professional people and employés who in the opinion of the Royal Commission and the Government are fairly entitled to the same advantage. The Government are glad to accept the New Clause.
§ Question put, and agreed to.
§ Clause read a Second time, and added to the Bill.