§ MR. T. W. LEGH (Lancashire, Newton)I beg to ask the Chancellor of the Exchequer, whether a farmer is liable to pay taxes under Schedule B if he is making no profits out of his farm; and if a tenant can be made to pay house duty on more than the actual rental?
§ THE CHANCELLOR OF THE EXCHEQUER (Sir MICHAEL HICKS BEACH,) Bristol, W.If a farmer assessed under Schedule B can prove, on appeal to the Income Tax Commissioners for the district, that he has made no profit during the year, the assessment is discharged. Assessments to the inhabited house duty are made on the full annual value of the premises, as determined by the Commissioners of Taxes for the district, who are, of course, quite independent of the Government. It may be that the money rent passing from the tenant to landlord does not represent the full annual value, and in these cases the house duty is charged on an assessment in excess of the actual money rent.