HC Deb 17 May 1966 vol 728 c211W
70. Mr. Costain

asked the Chancellor of the Exchequer if he is aware that in 1950 the Inland Revenue published a concession whereby capital allowances could be used to create or augment a loss available under Section 341 of the Income Tax Act 1952 and that statutory recognition was given to the practice by Section 20 of the Finance Act 1954; that the Inland Revenue are now seeking to interpret paragraph 20 of Schedule 15 to the Finance Act 1965, continuity of loss relief, in such a way as to exclude capital allowances for loss relief purposes in section 341 claims made by companies for 1965–66; and whether he will now instruct the Inland Revenue to allow these capital allowances for inclusion in Section 341 loss claims.

Mr. Diamond

I am aware of this point, but I cannot instruct the Inland Revenue to disregard the express terms of the provision to which the hon. Gentleman refers.