§ MR. LEON (Bucks, N.)I beg to ask the Chancellor of the Exchequer whether he is aware that, under the present system of collection of the Income Tax, an owner of lauds or tenements in his own occupation, whose total income is under £150 a year, and who has borrowed upon mortgage a portion only of the value of the property from a Building Society, whose total income is also under £150 per annum, repayable by monthly instalments to cover principal and interest, in which the interest is less upon each payment, and is not distinguishable from the principal, is compelled to pay Income Tax under Schedule (A) upon the whole annual value of the property, and is unable to obtain a return of the tax; and whether he can state in what way a return of the tax in such a case can be obtained?
THE CHANCELLOR OF THE EXCHEQUER (Sir W.HAHCOUBT,) DerbyThe Inland Revenue have entered into an arrangement with certain Building Societies, the effect of which, shortly, is to limit the payment of Income Tax to such profits as accrue to persons with taxable incomes. They are prepared to extend the terms of that arrangement to any Building Society. Some of the Societies to whom it has been offered have declined it. This loads to hardship to borrowers in certain cases. The Inland Revenue are now considering the whole question, with a view to remedy such hardship.