§ Sir B. PETOasked the Chancellor of the Exchequer whether industrial firms compelled to have recourse to litigation, for example, in defence of patent rights held by them, are allowed to set off the law costs thus incurred against their Income Tax assessments?
§ Mr. McNEILLThe question whether expenditure incurred by a trader is admissible as a deduction in the computation of his liability for Income Tax purposes depends upon whether the expenditure is of a revenue, as opposed to a capital character and is laid out wholly and exclusively for the purposes of the trade. If my hon. Friend will furnish me with particulars of the case which he has in mind, I will gladly have it investigated and will communicate the result to him in due course.