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Income Tax

Volume 148: debated on Tuesday 8 November 1921

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asked the Chancellor of the Exchequer whether he is aware that through the incidence of the Income Tax Acts a person at the conclusion of his first two years' trading to 30th October, 1919, made assessable profits of £1,241, and in his second year's trading sustained an actual loss adjusted for Income Tax purposes of £1,616, with the result that he has been asked at the close of the second year for an Income Tax payment of £380 2s.; and whether he is prepared to submit to the House legislation to remedy such a case, and also to make the same retrospective and applicable to the present slump period?

If my hon. Friend will give my right hon. Friend the Chancellor of the Exchequer the name and address of the person to whom he refers, he will have the case looked into. On the general question I would refer him to paragraph 1 of Rule 8 of the Rules applicable to Cases I and II of the Income Tax Act, 1918, which embodies provisions for any necessary adjustment of assessments at the end of each of the first three years in the case of new concerns.