MR. ALEXANDERCROSS (Glasgow, Camlachie)I beg to ask the Chancellor of the Exchequer, whether, in Scotland, churches and mission-halls, hitherto exempt from property tax, are now being assessed by the Inland Revenue authorities on the ground that they are used for purposes other than strictly Divine worship, although no profit is derived therefrom; whether he will state if this be the reason for their present assessment; and, if he will favourably consider an amendment, either in law or practice, to permit of their exemption from payment of this tax, as formerly?
§ THE CHANCELLOR OF THE EXCHEQUER (Sir MICHAEL HICKS BEACH,) Bristol, W.Churches are never assessed to Income Tax, and the same is the case with buildings used exclusively for Divine worship. But where the building is not so exclusively used, the mere fact that Divine worship is occasionally held there has not been considered as exempting it from assessment. The Tax under Schedule A of the Income Tax Acts is a property tax, and the liability to it does not depend on profit being made from the property. There has been no change of practice, as the hon. Member seems to suggest. It is of course possible that in particular instances buildings formerly exempt have recently been charged owing to some change in the circumstances. If the hon. Member will furnish me with particulars of any such case I will inquire into it.