§ Sir A. HOLBROOKasked the First Secretary to the Treasury whether he is aware that the amount paid by a trader for Income Tax under Schedule A on the annual value of business premises owned by him is added to the taxable profit on his trading and thus rendered liable to further taxation; and whether he will consider revision of this arrangement?
§ Mr. McNEILLI think my hon. and gallant Friend is under a misapprehension in referring to any addition to taxable profit. In computing the amount of a trader's profits for the purpose of Income Tax assessment, no deduction is, or ever has been, admissible in respect of the Income Tax which the trader is called upon to bear, whether under Schedule A on premises owned or under Schedule D on his profits. I see no reason for any alteration of this position, inasmuch as Income Tax is not an expense incurred in acquiring income, but a liability which arises after income has been received.