§ 86. Mr. Nabarroasked the Chancellor of the Exchequer whether he is aware that some inspectors of taxes admit as part of a maintenance relief claim for Schedule A Income Tax, professional fees and expenses relating to the claim including accountancy fees, whereas other inspectors do not so admit, and that some inspectors admit and others refuse to admit accountancy fees as a deduction for computing liability to Schedule D and Schedule E Income Tax; what is the reason for such inconsistencies; and whether he will make a statement.
§ Mr. Selwyn LloydIn general accountancy fees for preparing a maintenance claim are admissible expenses of management for the purposes of such a claim, and normal fees for preparing business accounts are an allowable business expense. Except under those heads, accountancy fees do not rank for tax relief. If my hon. Friend will send me particulars of any cases known to him where inspectors of taxes are not observing these rules I will have inquiries made and write to him.