§ 57. Mr. A. Edwardsasked the Chancellor of the Exchequer whether, on a change of ownership of a business, any allowance will be made for Excess Profits Tax for expenditure incurred by the successors on the carrying out of deferred repairs and the removal of works designed to afford protection from hostile attack.
§ Mr. DaltonIf the sale takes place after the termination of E.P.T., no relief from E.P.T. can be given to the successor. If the sale is before the end of E.P.T., the successor can get relief for the removal of A.R.P. works and for such cost of repairs as is attributable to his period of ownership.
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§ 58. Mr. A. Edwardsasked the Chancellor of the Exchequer whether, on a change of ownership of a business, any allowance will be made for Income Tax in respect of expenditure incurred by the successor on the carrying out of repairs deferred from the war period.
§ Mr. DaltonThe general rule is that expenditure incurred by the purchaser of a business, on restoring defective business assets, is capital expenditure like the money paid for the business. As capital expenditure it would, however, rank for the wear and tear allowances given to buildings and plant and machinery.