Income Tax and Research Expenditure

Part of the debate – in the House of Commons on 25th April 1944.

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In my view, and I think the Committee will agree, expenditure on research stands on a different footing from the other expenditure of a trader. It is not immediately related to the making of profits, as in the case of expenditure incurred in the manufacture and sale of goods, nor do the benefits accrue mainly to the originator. I think therefore that there 's a case for modifying in favour of research expenditure the distinction which the Income Tax Acts draw, and must indeed draw, between capital and revenue expenditure.