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Written Answers

Volume 333: debated on Friday 18 March 1938

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Written Answers

Air-Raid Precautions (Income Tax)

asked the Chancellor of the Exchequer whether he can now make any statement regarding income-tax allowances in connection with expenditure upon air-raid precautions schemes?

The question of the extent to which expenditure on air-raid precautions may be admissible as a deduction in computing trading profits for Income Tax purposes is primarily one for the respective bodies of Income Tax Commissioners, to be determined in accordance with the provisions of the Income Tax Acts. So far as the Board of Inland Revenue are concerned, the treatment which, in their view, would be appropriate to the various classes of expenditure which a trader might incur is indicated below. It will be appreciated that it is not possible on such a subject-matter to give more than general outlines: the particular application will depend upon the particular facts of different cases.

  • 1. Expenditure on such items as the following would be deductible:
  • (a) civilian duty and service respirators;
  • (b) protective clothing for staff engaged on air-raid precautionary duties;
  • (c) the training of employees in such duties;
  • (d) covering of glass with wire netting;
  • (e) dark blinds, screens and paint to render windows opaque;
  • (f) equipment and stores for first aid parties;
  • (g) equipment of decontamination squads.
  • 2. A wear and tear allowance would be due in respect of equipment in the nature of plant and machinery, such as fire appliances and air filtration plant.
  • 3. No deduction would be allowable in respect of expenditure of a capital nature, for example, expenditure which results in the physical alteration of, or in the incorporation of additions to, the structure of the trading premises. The Board, however, would not be disposed to regard as within this category expenditure on items such as steel shutters for protection of windows or timber frames and screens to provide air locks at doors or windows, which are not part of the permanent structure but represent fixtures or fittings required and used only for the emergency, and they would not object if the Commissioners allowed deduction of such expenditure.
  • National Savings Certificates

    asked the Chancellor of the Exchequer, whether he will give, at the last convenient date, the amount invested in savings certificates, including in the amount at that date of accrued interest; and the amount applied during the last three years in repaying the principal of the certificates presented for encashment?

    The amounts outstanding at 31st March, 1937, were:

    Principal£390,093,525
    Accrued Interest£124,000,000
    (approximately).
    The gross amount of principal repaid in each of the last three completed financial years was:

    1934–5£28,019,094
    1935–6£27,105,191
    1936–7£27,048,729

    Smallholdings (Highlands And Islands)

    asked the Secretary of State for Scotland, how many applications for small holdings in the Highlands and Islands have been made during the past six years; and how many holdings have been granted during that period?

    In the period of six years ending on 31st December, 1937, the number of applications for small holdings made by applicants in the Highlands and Islands was 673; in the same period 316 applicants have been provided with holdings in the area in question.

    Royal Navy

    Mercantile Officers (Equipment)

    asked the First Lord of the Admiralty, whether, in connection with the arrangements which have now been made for the training of mercantile officers in gunnery and naval co-operation work generally, arrangements are being made by the Admiralty to ensure that an adequate supply of anti-aircraft and antisubmarine equipment will be available in the event of necessity at the principal British ports in various parts of the world?

    Spain (Observation, Cost)

    asked the First Lord of the Admiralty, whether any estimate can be made of the additional cost to the Admiralty up to date of supervising the non-intervention in connection with the Spanish civil war?

    I regret that it is not possible to make any useful or even reasonably accurate estimate of the additional cost to the Admiralty of naval observation carried out under the Nonintervention Agreement. A large number of ships were employed on this duty, some of which were specially sent out from the United Kingdom; but the hon. and gallant Member will realise that if there had been no naval observation these ships would have been employed elsewhere on training or other duties. Although a considerable amount of additional steaming and consequent expenditure of fuel and wear and tear were involved, it is not possible to calculate with any precision the extent of the additional commitment involved.

    Fleet Air Arm

    asked the First Lord of the Admiralty, whether any decision has yet been reached as to whether the additional number of pilots required for the naval air-arm will be drawn from junior naval officers on the active list, from the lower deck, or from the Royal Air Force; and to what extent in each case?

    The additional pilots required for the Fleet Air Arm will be drawn from the following sources:

  • (a) junior executive officers of the R.N. and junior officers of the R.M.
  • (b) officers entered on a short service basis in the new Air Branch of the Royal Navy.
  • (c) officers transferred from the R.A.F.
  • (d) lower deck ratings serving under the scheme announced last week.
  • The numbers from each source will depend on the numbers of volunteers.