§ 78. Mr. Ernest Davies
asked the Chancellor of the Exchequer what decision has been reached as to the Income Tax liability of local authorities in regard to proceeds collected under parking schemes authorised by the Road Traffic Act, 1956.
I am advised, that as the law now stands, the profits of local authorities from parking schemes authorised under the Road Traffic Act will be liable to Income Tax, as are profits from ordinary car parks, whether run by a local authority or by any other taxpayer. They may, however, be set off against payments of loan interest, or losses which may have been incurred on other trading activities by the authorities concerned.