48. Sir C. Granville Gibsonasked the Chancellor of the Exchequer whether he will give an assurance that, in connection with the new Schedule to the Finance Bill, any unexhausted wear-and-tear allowance in respect of any accounting period can be carried forward to any subsequent accounting period?
§ Sir J. SimonUnder paragraph 3 of the Schedule to the Finance Bill (Adaptation of Income Tax provisions as to computation of profits), the wear and tear of each accounting period is allowed as an expense in computing the profits of that period for the purposes of the National Defence Contribution. If the result of that period is a loss, after deducting the wear and tear, the loss so arrived at falls to be carried forward under the provisions of paragraph 2 of the Schedule and deducted from the profits of subsequent periods.