HC Deb 10 December 1946 vol 431 c193W
55. Mr. A. Edwards

asked the Chancellor of the Exchequer whether the general rule, that expenditure incurred by the purchaser of a business on restoring defective business assets is capital expenditure, is subject to any exception under his regulations, so as to afford relief for Income Tax where there is a substantial identity of interest between the vendors and the purchases, as on the incorporation of a private business.

Mr. Dalton

The rule applies in every case of conversion of a business into a company.