§ MR. MAHONY (Meath, N.)I beg to ask the Chancellor of the Exchequer whether he is aware that the Old castle Board of Guardians have erected 154 labourers' cottages within the Old castle Union, County Meath, at a cost, including legal expenses, of about £137 10s. per cottage, for which they have to pay to the Treasury an annual sum of £6 2s. 7d., that, in addition, they have to pay various annual charges, including the rent of the land, amounting to£1 10s. 6d. per cottage; and that, although these cottages are let to labourers at a weekly rent of 1s., entailing a loss to the union of £5 1s. 1d. yearly for each cottage, the Income Tax Authorities claim Income Tax on each house; and whether, having regard to the circumstances of the case, he will take steps to remit the tax in this and similar cases?
§ ٭ MR. GOSCHENI am informed that the Old castle Board of Guardians have been properly assessed to Income Tax on the Poor Law valuation of the cottages in question. But upon their 1080 proving that the cottages had been built with money borrowed from the Board of Works, and that the interest on this money exceeded the net profit on the cottages, instructions were given to charge the tax upon the head rent alone; and the Guardians will, of course, be entitled to deduct the tax in the usual way when paying the head rent to the superior landlord, so that no portion of the tax will really fall on them.
§ ٭ MR. BARTLEY (Islington, N.)Will the same rule be adopted in the case of all labourers' cottages where the taxes and charges are in excess of the rents received?
§ ٭ MR. GOSCHENThe hon. Member had better give me notice of that question.