§ Mr. HAILWOODasked the Chancellor of the Exchequer whether a trader, who makes up his accounts at the 30th June each year and who in the year to 30th June, 1921, has made a heavy loss, has to make his claim against 1920–21 or must it be made against 1921–22, seeing that Section 34 of The Income Tax Act, 1918, refers to the year of assessment, but does not state which year?
Mr. YOUNGIn dealing with claims to relief from Income Tax in respect of losses under the provisions of Section 34 of The Income Tax Act, 1918, it is the normal practice of the Income Tax Commissioners concerned to have regard to the loss sustained in the traders' accounting year ending within the Income Tax year of assessment for which the claim is made,i.e., a loss incurred by a trader in his year ending 30th June, 1921, would form the basis for a claim under the Section for the Income Tax year 1921–22. Cases arise from time to time, however, in which the facts are found to warrant a departure from this rule and if my hon. Friend has any case in mind and will let me have the particulars, I will gladly have the matter investigated and communicate to him the result.