§ 50. Major NATHANasked the Chancellor of the Exchequer the amount of revenue which he estimates would be lost by exempting from Income Tax that part of the profits of companies actually expended upon plant, replacement, and re-equipment?
§ Mr. P. SNOWDENThe Income Tax law provides for an allowance from profits-in respect of the wear and tear of plant and machinery, either in a lump sum represented by the actual cost of renewal or replacement, or by way of annual allowance during its life. Any expenditure, therefore, in respect of renewal or replacement is already fully allowed for by the law. If the hon. and gallant Member has in mind new expenditure on plant and machinery, arising out of development and not out of renewal or replacement, I must point out that this new expenditure will carry allowance for wear and tear. To anticipate future allowances by giving an allowance at the outset would be a complete departure from the principles on which the Income Tax code is founded.