3. Mr. H. Wilson
asked the Chancellor of the Exchequer whether he is aware of the new arrangements proposed by certain companies for the hiring of cars to business firms; and how far the hiring charges involved will rank under the regulations as a 100 per cent. tax exemption charge in the calculation of Income Tax and Profits Tax.
§ Mr. H. Macmillan
The Control of Hiring (Vehicles) Order, 1956, came into operation on 1st October. Revenue expenditure incurred by traders on hiring cars for business purposes will, as hitherto, rank as an admissible deduction in computing trading profits for taxation purposes.
Since the Chancellor is no doubt aware of the strong feeling on the subject of initial allowances—I think on both sides of the House—will he have 457 a very careful look at this before the next Budget, in order that he can satisfy himself whether these new proposals, as the sponsors claim, are a means of getting certain tax concessions which are not available on the basis of buying cars and using them for business purposes?
§ Mr. Macmillan
Of course I will look at it, but I should have thought they would have had rather the opposite effect.