§ Mr. Heddleasked the Chancellor of the Exchequer if he will allow for deductions from revenue for tax purposes where it does not result in the benefit of profit or the production of a business asset, expenditure wholly exclusively and necessarily incurred in the following categories: (a) preparing and presenting planning applications where planning permission is subsequently refused, (b) entering architectural competitions for the design of buildings and (c) tendering for contracts which are not obtained; and if he will make a statement.
§ Mr. MooreThe general rule is that expenditure of a revenue nature which is wholly and exclusively for the purposes of a trade or profession is allowable for tax. This includes the expenses of entering architectural competitions or tendering for contracts, regardless of whether these are successful and lead to profit but not the costs of abortive planning permissions which are generally of a capital nature. I have no plans at present to change the law.