§ Mr. Gledhillasked the Chancellor of the Exchequer whether, in view of the recent increase in Income Tax, he will review the present rules under which expenditure upon research is regarded as capital expenditure and not normally allowable in a profit and loss account for the purposes of assessment, whereas expenditure on such items as advertising is allowable in this connection; and whether, in view of the importance of scientific research to the export trade of this country, he will endeavour to introduce an appropriate remedy in his forthcoming Budget?
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§ Sir J. SimonMy hon. Friend would not be correct in assuming that in no circumstances would expenditure incurred by a trading concern on research for the purposes of its business be admissible as a deduction in computing its profits for Income Tax purposes. If he has any particular case in mind, and will let me know the facts, I will gladly look into it and communicate to him the result of my inquiries.
Categories of Vehicles. Licences. Gross Receipts. 1st Dec., 1938 to 28th Feb., 1939. Approximate. 1st Dec., 1939 to 29th Feb., 1940. 1st Dec., 1938 to 28th Feb., 1939. Approximate. 1st Dec., 1939 to 29th Feb., 1940. Number. Number. £ £ Cars… … … (A) 958,353 573,519 8,809,347 8,422,437 (Q) 809,830 649,914 1,707,302 2,228,155 1,768,183 1,223,433 10,516,649 10,650,592 Motor Cycles … (A) 79,046 49,831 146,181 126,946 (Q) 213,224 132,005 117,334 106,830 292,270 181,836 263,515 233,776 Hackneys … … (A) 61,466 58,191 3,046,188 2,829,939 (Q) 23,710 26,809 111,838 115,905 85,176 85,000 3,158,026 2,945,844 Tractors, etc. … (A) 23,703 33,869 64,045 66,894 (Q) 432 416 3,682 3,418 24,135 34,285 67,727 70,312 Goods … … (A) 337,347 315,881 9,151,723 8,615,108 (Q) 143,866 141,714 841,420 834,940 481,213 457,595 9,993,143 9,450,048 Miscellaneous … 874,434* 701,649 420,120 324,272 Totals … … 3,525,411 2,683,798 24,419,180 23,674,844 * Includes 844,862 Driving Licences: Excludes 66,589 Exempt Vehicles † Includes 678,177 (approximate) Driving Licences: Excludes 32,505 Exempt Vehicles. A. Annual. Q. Quarterly.