§ 77. Mr. Snowasked the Chancellor of the Exchequer whether his regulations provide for persons normally resident in the country to claim Income Tax allowance for living accommodation occupied by them in London in pursuance of their business activities, notwithstanding Section 137 (c) of the Income Tax Act, 1952.
§ Mr. R. A. ButlerIf the hon. Member refers to the cost of maintaining a second private residence, no part of which was occupied for the purposes of the business, that cost would be wholly inadmissible in assessing business profits to Income Tax.
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§ 78. Mr. Snowasked the Chancellor of the Exchequer whether his regulations provide for companies operating in the Metropolitan area to maintain living accommodation for the companies' directors or staff without the said accommodation being a personal Income Tax charge on the occupants, notwithstanding Clauses 123 and 137 of the Income Tax Act, 1952.
§ Mr. R. A. ButlerThe cost of maintaining such living accommodation would be deductible in computing the company's profits for Income Tax purposes if it was incurred wholly and exclusively for the purposes of the company's trade. The value of the benefit would normally be taxable as gross emoluments if the recipient was an employee earning £2,000 a year or more, or a director. In other cases the question of liability of the recipient would depend on the facts, but there are instances where liability would not arise.