43. Miss Leeasked the Chancellor of the Exchequer to what extent under his regulations Income Tax relief is allowed to business firms for expenditure incurred in advertising their products; and what limit is placed on the sums that may be spent for this purpose.
The Chancellor of the Exchequer (Mr. Derick Heathcoat Amory)Under the ordinary Schedule D expenses rule expenditure on advertising is allowed as a deduction if it was incurred wholly and exclusively for the purposes of the taxpayer's trade and was not of a capital nature. There is no statutory limit of amount.
Miss LeeIs the Chancellor of the Exchequer aware that certain steel firms, under the guise of advertising their wares, are carrying out a blatant anti-Labour Party and anti-nationalisation propaganda? Is he further aware that this has gone on now to such an extent in the dailies and weeklies that if any hon. Member had collected the examples he would have collected enough to paper the walls of this Chamber? Will the right hon. Gentleman say whether he intends to permit this abuse of legitimate advertising to continue?
Mr. AmoryI need not go into the meritoriousness or the reverse of any particular form of advertising expenditure. The test is not the meritoriousness or otherwise of it but its connection with the business.
§ Mr. GaitskellWill the right hon. Gentleman explain exactly in what way the advertisements to which my hon. Friend the Member for Cannock (Miss Lee) refers are related to the business of the specific undertaking?
§ Mr. P. WilliamsWould my right hon. Friend not agree that it is perfectly reasonable to take action to prevent a robber coming on board?
§ Mr. SpeakerMr. Grey.
Miss LeeOn a point of order. I think that on a question of this importance we might be allowed a few more supplementary questions.
§ Mr. SpeakerI take another view.