HC Deb 16 December 1937 vol 330 cc1336-7
66. Mr. Wise

asked the Chancellor of the Exchequer whether his attention has been drawn to the fact that no insurance companies will insure properties against the risk of air raids; and whether, in those circumstances, he will permit those firms that create their own insurance funds to treat as a working expense the sums which they transfer annually to the insurance funds?

Sir J. Simon

It is a general principle of Income Tax that sums set aside by a trader to constitute his own insurance fund are not admissible as deductions in computing his profits for Income Tax purposes, whether there is an alternative method of insurance or not, and I am not in a position to authorise an exception.

Mr. Wise

Are not the circumstances rather different in this case, because alternative insurance is not available, and that if any alternative insurance is provided it must be by the persons themselves?

Sir J. Simon

I do not think it makes any difference in principle, but I will gladly consider the matter. The rule, as I have stated, would apply whether there was any alternative method or not.

Mr. Fleming

Can the right hon. Gentleman tell us whether the Government themselves have any scheme to meet these cases?

Mr. Gallacher

Is it because insurance companies have no confidence in the Defence plans of the Government?