HC Deb 28 January 1941 vol 368 cc432-3W
Mr. Hannah

asked the Chancellor of the Exchequer whether a firm, compelled by war work, but probably only temporary, to increase its staff, may use what would otherwise have to be returned as excess profits to provide a canteen that will be much too large for use by the normal staff after the war?

Sir K. Wood

Where capital expenditure has been incurred by reason of the war in the provision of canteens it will rank for relief from Excess Profits Tax under the provisions of Rule 3 of Part I of the Seventh Schedule, Finance (No. 2) Act, 1939, and, as I indicated in reply to a Question asked on the 19th December last by my hon. Friend the Member for Aylesbury (Sir S. Reed), I intend to include in the next Budget, as a wartime measure, proposals for the allowance of similar relief for the purposes of Income Tax and National Defence Contribution. I would add that all revenue expenses incurred by a trader in the maintenance of canteens for the use of his employés are admissible as a deduction in computing his trading profits for taxation purposes.

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