§ Mr. CLARRYasked the Chancellor of the Exchequer whether any change or variation has taken place during the last year regarding the assessment for purposes of Income Tax upon any sums allocated by individuals, companies, or associations for political propaganda purposes; and, if so, in what respect?
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§ Mr. CHURCHILLThe admissibility of expenditure as a deduction in computing liability to Income Tax in respect of trade or professional profits depends upon whether it can be shown to be money wholly laid out or expended for the purpose of the trade or business. It has never been the practice of the Inland Revenue authorities to regard sums allocated for political propaganda purposes as satisfying this condition.
§ Mr. FENBYasked the Chancellor of the Exchequer whether he will make arrangements to enable boarding-house keepers, when making returns for the purpose of Income Tax, to claim reduction in respect of the parts of the houses which are devoted exclusively to letting purposes?
§ Mr. CHURCHILLI am advised that a deduction of the nature indicated may be claimed under the present law. If the hon. Member is aware of any case in which difficulty has been experienced, and will furnish me with the necessary information, I will gladly have the matter investigated and will communicate the result to him in due course.
§ Mr. MACQUISTENasked, the Chancellor of the Exchequer whether, in considering any reduction of Income Tax, he will primarily apply the benefit of such abatement to undistributed profits which are put to reserve for the development of businesses, in view of the fact that the burden of Income Tax is more than industries are able to support?
§ Mr. CHURCHILLI must ask my hon. and learned Friend to await my Budget statement.