§ Sir J. Mellorasked the Chancellor of the Exchequer whether he will explain the method of assessment of British Restaurants to Income Tax and Excess Profits Tax; and whether amortisation of capital expenditure is taken into account?
§ Sir K. WoodThe rules for computation of profits for taxation purposes are general in character and there is no special provision relating to concerns of the kind which my hon. Friend has in mind. The taxation code does not generally make any allowance in respect of amortisation of capital but there are special war-time provisions to be found in paragraph 3 of Part I of the Seventh Schedule to the Finance (No. 2) Act, 1939, and Section 19 of the Finance Act, 1941, under which special allowance is made for the depreciation of buildings, plant and machinery provided since 1st January, 1937.