HC Deb 06 February 1940 vol 357 cc32-3
60. Mr. Dodd

asked the Chancellor of the Exchequer whether he will increase the allowances to concerns for depreciation on machinery which normally is working not more than 48 hours per week but which is now in many cases running over 120 hours per week, and therefore wearing out much more quickly and especially since there is much less time for maintenance; and whether he will make the increase in allowances proportionate to the increased hours run?

Sir J. Simon

Where plant and machinery are subject to exceptional wear and tear by reference to abnormal war conditions such as the continuous working of double or treble shifts it is the established practice to allow increased rates of wear-and-tear allowance. The increase, which would not necessarily be in proportion to the increased hours run, would have to be determined by reference to the circumstances of particular businesses or classes of industry. I would suggest that the businesses or industries concerned should approach the Inland Revenue authorities in the matter.

61. Mr. Dodd

asked the Chancellor of the Exchequer whether he will allow engineering concerns to base their annual depreciation of machinery on the original cost of the machinery instead of on each year's depreciated value?

Sir J. Simon

I am afraid I cannot see my way to adopt my hon. Friend's proposal, which would involve a departure from what has been the long-established practice of computing the wear-and-tear allowance for machinery on the basis of written-down values.

Mr. Dodd

Since this principle has already been applied in one direction could not it be applied also to other machinery?

Sir J. Simon

The principle is not quite the same. This is a very complex matter and I am afraid that I cannot vary my answer.