§ VISCOUNT MONSELLasked Her Majesty's Government:
Whether, when the rent of a flat is allowed as an expense account, there is any limit placed on the amount of that rent.
§ THE CHANCELLOR OF THE DUCHY OF LANCASTER (VISCOUNT BLAKENHAM)The general rule is that a director or employee can claim a tax deduction only for expenses which he is obliged to incur "wholly, exclusively and necessarily in the performance of" the duties of his office or employment. No part of the rent of a flat used for normal residential purposes will as a rule qualify for such a deduction. Where the conditions of the expenses rule are satisfied, the amount allowable depends on the facts of the particular case.
House adjourned at nineteen minutes before eight o'clock.