Mr. Vaneasked the Chancellor of the Exchequer whether he is aware of the hardship caused under the present Income Tax regulations where a business, which makes a loss in its second year of trading and is unable to continue to trade, is assessed to tax in each of these two trading years on the actual profits made in the first year, and where against the second year's assessment no claim for relief can be made which will cover the case where the partners in the business have no other income against which the loss can be set; and whether he will amend the regulations so that businesses in this position are not called upon to pay tax except on the actual profits of the two trading years taken together.
§ Sir S. CrippsThe point which I understand the hon. Member to be raising is one that is within the terms of reference of the Tucker Committee, which is reviewing, among other things, the basis of assessment of businesses to Income Tax under Schedule D. I must await the report of that Committee before I can consider any issue of this nature.