20. Mr. H. Wilsonasked the Chancellor of the Exchequer whether the provision by newspapers of substantial sums of Premium Bonds as prizes in a competition will be admitted by the Board of Inland Revenue as wholly and exclusively laid out for the purposes of trade and thus as admissible expenses for tax purposes.
§ Mr. H. BrookeExpenditure on newspaper competition prizes which is of a revenue nature would normally be regarded by the Board of Inland Revenue as so laid out, and accordingly as an admissible deduction in computing trading profits for tax purposes. As regards the provision of substantial sums of Premium Bonds as prizes, I would refer the right hon. Gentleman to what my right hon. Friend said in his Budget statement about a limit on individual holdings.
Mr. WilsonShould not the Chancellor look again at the admission for tax expenses of these very large sums which are being offered by newspapers week by week in the circulation battle? 1400 With regard to the particular offer of Premium Bonds, does it not seem rather anomalous that something which is designed to increase savings should be paid for by the Chancellor himself out of tax expenses?
§ Mr. BrookeI think that the right hon. Gentleman is referring to an offer which has been published but has not yet become a reality. I cannot give replies in the House about the tax position of individual companies, more particularly when they are hypothetical and not actual.