§ 68. Mrs. Mannasked the Chancellor of the Exchequer to what extent under his regulations tax relief is allowed to business firms in respect of expenditure on industrial, market or consumer research and what steps are taken to ensure that any such research for which relief is allowed is made for commercial rather than political ends.
§ Mr. SimonIn general the expenditure to which the hon. Lady refers is deductible in computing trading profits if it was incurred wholly and exclusively for the 103W purposes of the taxpayer's trade and was not of a capital nature; but there are special provisions in Part XI of the Income Tax Act, 1952, for relief in respect of expenditure on scientific research related to a trade.
As regards the last part of the Question, the Inland Revenue authorities make such inquiries about the character of these and other forms of business expenditure as may be necessary to establish whether the taxpayer is entitled to relief.