HC Deb 14 May 1931 vol 252 cc1362-3
63. Lieut.-Commander KENWORTHY

asked the Chancellor of the Exchequer if he is aware that when a manufacturer pays for scientific research to improve his methods the expense thus incurred is not allowed to be deducted in calculating taxable profits, whereas the expenditure on routine testing of material or control of processes is so allowed; and whether, as this system puts a tax on research, he will state what would be the probable immediate cost of a concession designed to remove this difficulty?


My hon. and gallant Friend would not be correct in assuming that in no circumstances would expenditure incurred by a manufacturer on research for the purposes of his business be admissible as a deduction in computing his profits for Income Tax purposes. If he has any particular case in mind, and will let me know the facts, I will gladly look into it and communicate to him the result of my inquiries.

Lieut.-Commander KENWORTHY

I am much obliged to my hon. Friend. Can he let me have an answer, not necessarily now, to the last part of the question as to the cost of the full concession?