§ 34. Mr. Danceasked the Chancellor of the Exchequer on what basis the Inland Revenue agrees claims for expenditure on personal clothing as a deduction for tax purposes.
§ Mr. DiamondNormal expenditure on personal clothing is not an allowable expense. Under the statutory rule applicable to office holders and employees expenditure is deductible only if it is incurred wholly, exclusively and necessarily in the performance of the duties of the office or employment. For the self-employed the test is whether the expenditure is incurred wholly and exclusively for the purposes of the trade or profession.
§ Mr. DanceIs the right hon. Gentleman aware that that is a most complicated answer? How do people apply for this allowance? That is what I am trying to get clear.
§ Mr. DiamondBy writing to the Inspector of Taxes setting out the circumstances.
§ Mr. OgdenIs my right hon. Friend aware that when I worked down the pits one Sunday suit lasted me five years and that on the back benches a suit does not last five minutes?
§ Mr. DiamondI am not sure whether my hon. Friend is basing his case on the fact that his clothes are exclusive, but the expenditure has to be "necessarily incurred" as well.