HC Deb 27 April 1965 vol 711 cc30-1W
38. Mr. Dudley Smith

asked the Chancellor of the Exchequer whether, in view of the new criteria he has established on business expenses, he will introduce legislation to include for tax assessment purposes the entertaining by Government officials and the armed forces of individuals other than foreign buyers or sellers.

Mr. MacDermot

No. Where an employer bears the entertaining expenses of a director or employee in the business world the new disallowance will be made in computing the employer's profits. In the case of the Crown servant, the cost of entertaining is already borne by the Crown and no question of disallowance arises as the Crown is not assessed to tax.