HC Deb 24 June 1920 vol 130 c2397W
Mr. GREENWOOD

asked the Chancellor of the Exchequer if his attention has been called to the reply by the Treasury to Mr. A. F. Shepherd, the Appeal Director of the University of Liverpool, that subscriptions would be allowed as deductions for Income Tax purposes, as follows: subscriptions made by a trader in support of evening classes in his district, at which his younger employés may attend and receive instruction; and will he say whether such support is given to the evening classes at the universities where the students' fees only equal one-third of the cost?

Mr. CHAMBERLAIN

Subscriptions of this character can only be treated as admissible deductions in arriving at a trader's profits for Income Tax purposes, if they are in the nature of business expenses. Subscriptions made by a trader in support of evening classes in his district, at which his younger employés may attend and receive instruction, are regarded as payments in aid of wages, and are admitted accordingly.