§ 22. Mr. Barnettasked the Chancellor of the Exchequer on what grounds payments by companies for private medical insurance on behalf of employees is allowable as a deduction for tax purposes; and if he will make a statement.
§ Mr. TaverneBecause the expenditure is normally incurred wholly and exclusively for the purposes of the employer's business.
§ Mr. BarnettAre not there many items of expenditure, some "wholly and exclusively" incurred for business purposes, which are not so allowed? One could, for example, allow holidays for all members of the staff. Will my hon. and learned Friend at least reconsider the whole question of what is taxable and what is not in the way of benefits in kind?
§ Mr. TaverneIn general one wants to stick to the position whereby it is for a company to decide how it is to make its profits. Expenditure incurred in making the profits is something which should be allowed.
§ Sir G. NabarroIf a company is allowed the charge as a deduction, why should not a self-employed individual—as the Chancellor as a member of the Society of Authors before he took office was self-employed—charge his B.U.P.A. subscription against his personal taxation?
§ Mr. TaverneThe hon. Gentleman will realise that different tax rules apply to different categories.
§ Sir G. NabarroOn a point of order, Mr. Speaker. In view of that wholly unsatisfactory reply, I beg leave to give notice that I will seek to raise the matter on the Adjournment.