§ 33. Mr. Thornton-Kemsleyasked the Chancellor of the Exchequer whether, in view of the heavy and frequently abortive expenditure incurred in connection with claims for loss of development value under Part VI of the Town and Country 1891 Planning Act, 1947, he will instruct the Commissioners of Inland Revenue to treat such expenditure either as an expense which may be deducted from profits before taxation, or as part of a management expenses claim.
§ Mr. R. A. ButlerNo, Sir. I am advised that expenditure in connection with a claim under the Town and Country Planning Act, 1947, for compensation for the loss of development value of land held as a fixed asset is not admissible as a deduction in computing profits or as an expense of management for taxation purposes.
§ Mr. ButlerBecause such expense is regarded as an outlay of a capital nature, and is therefore inadmissable.