Wear and Tear Allowance For Goods Vehicles
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MEGOTIATIONS have been going on I between Mr. R. Hindley, on behalf of A.R.O., and ths Inland Revenue authorities with reference to the allowance made in respect of " wear and tear" for the purposes of income tax.
For some time it has been fixed at 20 per cent, plus 20 per cent., i.e., 24 per cent in all, but it has been generally felt that this allowance should be increased.
The case has been put forward so forcibly and cogently that the authorities have agreed to extend the allowance by 25 per cent„ totalling 30 per cent., in the case of A licensees; also, this will tie retrospective from April, 1940. In the case of B and C licensees, each case will have to be decided on its merits and proved to the satisfaction of the Commissioners. If agreed in any such case, the allowance will, also be made retrospective, Both Mr. 14indley and the Association concerned are to be congratulated most heartily on the excellent result of their work.
As an example of how this operates, taking the value of vehicles for wear and tear purposes at £10,000, the tax saving for 1940-41, if chargeable at 8s. 6d. in the R, will be £255; for 1941-2, if chargeable at 10s. in the £, it will be £300. If a concern be liable for Excess Profits Tax, the amount to be paid will be reduced by the full 6 per cent, on the value of the vehicles concerned.