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Hauliers Win Big Tax Case

20th November 1959
Page 34
Page 34, 20th November 1959 — Hauliers Win Big Tax Case
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Which of the following most accurately describes the problem?

on Transport Units

BY A SPECIAL CORRESPONDENT

THROUGH the tenacity of the Road Haulage Association, the road haulage industry this week won an important battle, which has been in progress for some years, over initial and capital tax allowances on vehicles bought from the British Transport Commission on the denationalization of transport.

Limited Output Brings Guy Big Loss

XPLAINING a group loss of

£232,164 in the year ended July 31 last, the directors of Guy Motors, Ltd., say that a sufficient volume of production of new models, which had been introduced at a time when there was a shortage of components, could not be achieved. . Output from August to October this year was insufficient to show a profit, but production was expected shortly to improve substantially. There is an increasing demand for Guy vehicles and orders are satisfactory.

A representative of The Commercial Motor was told at the Scottish Show that a shortage of components was generally creating difficulties for commercialvehicle manufacturers, who, as a result of the removal of purchase tax in the -Budget, were now inundated with orders, which they could not quickly fulfil.

This trend is remarked by Mr. George Kenning, chairman of Kennings, Ltd., in his annual report. He says the removal of purchase tax has transformed the Commercial-vehicle market and the company has a long waiting list for most types of vehicle.

BRAILSFORD INQUIRY . ABANDONED

THE inquiry . proposed by Mr. J. A. T. Hanlon, Northern Licensing Authority, into the grant of an A licence to W. R..Brailsforti and Co.,Ltd. (The Commercial Motor,. August 21) was cancelled at Newcastle upon Tynelast week. Following the publication of. a letter written by Mr. Frank Milton, secretary of the Northern Area of the Road Haulage Association. Mr.. Hanlon had stated that he proposed to reopen the case.

Last .week the AuthoritY told Mi. T. H. Campbell Ward la:w, for Bra i I sford, that after discussions officials he was satisfied that there was no need_ to carry the matter further.

RELAX LAW FOR RURAL BUSES A SUGGESTION that the law should , PA be relaxed toallow rural communities to approach garage-owners to run small buses has been made by Prof. R. Peers, chairman, East Midlands Transport Users' Consultative Committee. Speaking to the Nottinghamshire Rural Community Council, last week-end, he -said that the suggestion might be an answer to the problem where major bus services or railway branch lines had been closed.

A32

On appeal by R. Knott and Son, who were backed by the R.H.A., the Special Commissioners of Income Tax decided on Tuesday that the amounts paid by buyers of transport units were solely for the physical assets. The Commissioners dismissed an argument by the B.T.C. that, apart from the assets specified in the contract, they sold the right to apply for a special A licence, and that part of the purchase price was for that concession.

The Commissioners held that the B.T.C. could not sell something which they did not possess. In the case taken to appeal they sold a lorry, a starting handle and 28 gallons of petrol for £1,405. The appellate tribunal ruled that no part of this sum was for a.special A licence.

The practical effect of this decision is that a buyer of a transport unit is entitled to claim initial and capital allowances for tax purposes on the whole of the purchase price, instead of on only part of it. Some £20m. was paid for units; and it has been estimated that at least £4m. tax is involved. The outcome of the Knott case is, therefore, a great victory for the industry.

" HY POCRITICAL " F.M.P.T.E. DECISION

" AHYPOCRITICAL decision" was how Clk. Wilfred Spencer, chairman, Coventry Transport Committee,on Tuesday described the action of the Federation of Municipal Passenger Transport Employers in expelling his undertaking. The reason for the expulsion was Coventry's insistence on giving safe-driving awards to bus drivers.

Clir. Spencer said that already 80 per cent. of municipal bus drivers throughout the country received safe-driving awards in one form or another. The decision showed a total disregard for human safety.

The scheme of presenting awards for safe driving might save money for the department in the long run, he added. Last year they paid a total of £533 in awards, and insurance premiums were increased by 20 per cent. Premiums might be reduced, or at least maintained, if save driving were a factor for consideration in their assessment.

Awards were made to other corporation drivers who averaged 7,000-8,000 miles a year. It was unfair not to reward bus drivers, who averaged 22,000 miles a year, said Cllr. Spencer.

The city council would now be recommended to make a deviation payment to bus drivers of 11 s. per week, 3s. more than laid down by the Federation.


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