§ Mr. H. G. Williams
asked the Chancellor of the Exchequer whether expenditure on simply-constructed trenches and sand-bag ramparts which is a deductible expense in computing trading profits for Income Tax purposes will also apply to the type of trenches recommended as air-raid shelters in the provisional code issued by the Lord Privy Seal as a guidance to occupiers of factories under Clause 10 of the Civil Defence Bill?
§ Captain Crookshank
The question whether expenditure incurred by trading concerns on air-raid precautions is allowable as a deduction in computing profits for Income Tax purposes is one for determination by the appropriate body of Income Tax Commissioners by reference to the facts of each particular case. While, as my right hon. Friend has previously stated, the Board of Inland Revenue, so far as they are concerned, would offer no objection to the allowance of expenditure on simply constructed trenches and sand-bag ramparts, 1003W trench shelters of the kind contemplated by the provisional code to which my hon. Friend refers would commonly involve expenditure which in the Board's view would fall to be regarded as capital expenditure.