HC Deb 14 June 1945 vol 411 c1804W
Mr. Doland

asked the Chancellor of the Exchequer whether he will state the present practice with regard to allowances for Income Tax in respect of shop fronts.

Sir J. Anderson

Shop fronts are dealt with on what is known as the renewals basis. No allowance is made in respect of a trader's expenditure on first installing a shop front, which is expenditure of a capital nature, but when, in the course of his business, he comes to replace the shop front the cost of replacement to the extent that it does not represent additional expenditure on improvements, is regarded as revenue expenditure in the nature of maintenance and repairs and is allowed accordingly. Thus, where a trader replaces his shop front by a new and better one, the amount allowed is limited to the sum which would have been necessary to replace the shop front with a new front similar to that which is being demolished.