HC Deb 06 May 1924 vol 173 cc259-60W

asked the Chancellor of the Exchequer whether he has considered the case of business firms and others who have become guarantors of the British Empire Exhibition now being held at Wembley, who are not exhibitors, in regard to any payment they may be called upon to make under their guarantees; and whether he will recognise any such payment as being properly deductable in arriving at the assessments of Income Tax?


I am advised that such payments could not consistently with the law be treated as deductions in arriving at Income Tax liability.


asked the Chancellor of the Exchequer whether he is aware that the Inland Revenue Department is inter preting Section 18 (2) of the Finance Act, 1920, in a manner directly opposed to the meaning which was intimated by the then Chancellor of the Exchequer on 7th July, 1920 (OFFICIAL REPORT, Vol. 131, No. 93, cols. 1512–13); and whether he will issue instructions that, where a business is bona fide carried on jointly by the husband and wife, although not in partnership, and even though no wage or salary is paid to the wife by the husband, the total income of the claimant shall be considered as including the earned income of the wife and that the taxpayer shall be granted an increase in his personal allowance not exceeding £45 as laid down by the Section?


The increased deduction provided by Section 18 (2) of the Finance Act, 1920, is subject to the condition that the wife should be in receipt of earned income. I understand that the Inland Revenue Department regards this condition as satisfied where a wife is in receipt of a share of the profits of a business carried on jointly by husband and wife, or where a wife receives remuneration for services rendered to her husband's business, and this interpretation seems to be precisely in accordance both with the terms of the Statute and with the statement made by the then Chancellor of the Exchequer, on the 7th July, 1920, to which the hon. Member refers. In these circumstances, I am unable to authorise the issue of instructions in the sense desired by the hon. Member.

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