HC Deb 02 April 1968 vol 762 cc156-7
18. Mr. Hugh Jenkins

asked the Chancellor of the Exchequer if he will take steps to prevent the cost of advertisements for helping Britain being charged as business expenses for taxation purposes, in order to obtain a larger revenue for the Exchequer from persons advertising in this way.

Mr. Harold Lever

No, Sir. The normal rule is that such expenses are not allowable in computing the profits of a trade for taxation purposes unless they have been incurred wholly and exclusively for the purposes of that particular trade. That rule will be applied in this and all other cases.

Mr. Jenkins

Is my hon. Friend aware that that reply will give considerable satisfaction, because it is the general view of the House that business expenses should be looked at very closely and allowed only where they can be clearly justified in relation to the business concerned?

Mr. Lever

I am glad that my hon. Friend is so gratified by an announcement of almost Gladstonian antiquity.