INCOME TAX IN BRITAIN

Press, Volume LXXXIX, Issue 27010, 9 April 1953, Page 10

INCOME TAX IN BRITAIN

TOMMY TRINDER IN SERIOUS MOOD “WILL FINISH UP BROKE ” It was with the gravity of one who has had unfortunate, first-hand and complete knowledge of painful experiences that Tommy Trinder spoke of income tax in England between his frolics at yesterday’s matinee at the Theatre Royal. Income tax could not be more severe tha.n it was in England, said the comedian. Earned income in Britain had a limit of about £6OOO after tax. The standard of wealth which some business people maintained was gossible only because their country omes, their racehorses and their expenses were paid by the companies with which they were associated. The £4OOO car which he owned was bought for business purposes. He explained that under the business taxation methods 40 per cent, of the purchase price was allowed for tax deductions, and the total price was written off after three years, depreciation being allowed at 20 per cent, per annum.

“One might as well have the best car one can buy in. those circumstances,” he said. “It seems a very foolish thing that you have to spend that sum of money on a motor-car instead of being able to save it for the future.”

Taxation was a problem with every nation in the world. He had proved that by the applause given by the public in all countries he had visited when he made “cracks” on the taxation. Each country had its own ex-' ouses for taxation. In the United States the man in the street felt that he was being taxed to keep the rest of the world, through Marshall Aid. The people in Englarid believed that their taxes were being kept high to maintain the rest of Europe. Nowhere had he found any person without a complaint on taxation. t No Depreciation Allowance “But I do feel on one question,” said Tommy Trinder. “A man in industry is allowed depreciation for tax purposes on his plant and equipment. Take an actress. She depreciates far more quickly than a piece of machinery, and she cannot make replacements. She cannot write anything off even after three or four good years’ to provide for her future. ‘‘lf I were to fall down and break my leg my earning capacity would be ml. All associated with me would for the time being, no longer anticipate any earnings. If my investments were in a business. I could stay at home and for a period the business would get by. But that doesn’t happen in show business. If I had happened to create a goodwill in industry as I have done in the theatre, I could sell it for probably £30,000 or £40,000 i free of tax.

‘‘l have nothing to sell, except what I can produce daily on the stage. The whole of my life has been spent on the stage, and I will finish up completely broke. I know, that, because I am unable to save anything” fi? du £t ry was run accountants, he said. They showed those who invested in it how they could still live on a scale which others could not enjoy by their individual efforts. , !? e had tea in a restaurant and left 2s under the plate, the waiter would sniff at the tip, he said. That 2s represented all he had left out of earnings of £4 in England.