§ 59. Mr. Ralph Etherton
asked the Chancellor of the Exchequer whether any specific attention and investigation are 524 being given by his Department to the practicability of relief from taxation of industrial research by making the costs of such research and development work, including the cost of patents, proper charges against taxable profits?
§ Sir J. Anderson
As explained by the Financial Secretary in his speech during the Second Reading of this year's Finance Bill (OFFICIAL REPORT, 18th May, 1943, col. 1070), revenue expenditure on research is generally allowed as a deduction in computing profits, and the case of capital expenditure is one of the matters for consideration in the inquiry now being carried out by the Board of Inland Revenue into the treatment of expenditure for taxation purposes.