§ MR. ARTHUR O'CONNOR (Donegal, E.)
I beg to ask the Chancellor of the Exchequer if tenant purchasers in Ireland are required to pay Income Duty both as occupiers and as owners while still under liability for purchase instalments?
§ *THE CHANCELLOR OF THE EXCHEQUER (Sir W. HARCOURT,) Derby
Yes; if, after deducting, the interest he pays on the purchase-money, his income, from all sources, is above the exemption line (£150).
§ MR. ARTHUR O'CONNOR
I beg to ask the Chancellor of the Exchequer (1) how the vendor, in the case of a sale and purchase of a farm under the Ashbourne Act, is assessed to Income Duty in respect of the amount paid to him; (2) and how the purchaser is assessed in respect of his ownership, in respect of his occupancy, in respect of the amount paid by him, as principal money and interest severally included in the amount of the purchase annuity?
§ SIR W. HARCOURT
(1) the amount paid to him is a capital sum, and, as such, is not liable to Income Tax. If, and when, it earns annual interest, dividends, or profits, they become liable to the tax; (2) as owner, he is assessed under Schedule A on the amount of the Poor Law Valuation, at 6d. in the £1. As occupier, he is assessed under Schedule B on the same valuation, at 2¼d. in the £1. He receives no allowance in respect of the principal money included in the amount of the purchase annuity, but allowance is made to him of the duty on the interest.