§ Mr. Arthur Lewisasked the Chancellor of the Exchequer to what extent the grants made by public companies to charities, political parties, the arts and other such organisations are allowable to be set against earnings for tax purposes; and whether he will give for the longest and most convenient period of time the total amounts of such moneys claimed and allowed for against tax.
§ Mr. Peter Rees[pursuant to his reply, 15 January 1980, c. 722]: The general rule is that expenditure is allowed as a deduction in computing profits for tax purposes if it is incurred wholly and exclusively for the purposes of the company's trade. It is not possible to say whether grants to organisations of this kind would qualify for relief, but if a taxpayer disputes the Inland Revenue's view in a particular case the matter can be taken to the appropriate body of appeal Commissioners. No central record is kept of such payments allowed for tax purposes.