§ CAPTAIN PRETYMAN (Suffolk, Woodbridge)I beg to ask the Chancellor of the Exchequer, on what system are deductions for repairs now allowed in assessing the annual value of agricultural estates for payment of Death Duties; and can he give the House any figures illustrating the present practice of the Revenue Department in making such allowances?
§ THE CHANCELLOR OF THE EXCHEQUERIn assessing an agricultural estate for payment of Estate Duty, the cost of repairs is allowed as a deduction from the gross annual value of the estate. The amount on this account is fixed in each case by agreement between the accounting parties and the Inland Revenue authorities. I have looked into a number of cases, as many as 29, of agricultural estates of an annual value varying from £120 to nearly £30,000, and I find that the deductions which have been allowed for repairs range from 20 per cent. downwards. The cases in which more than 10 per cent. was allowed numbered 44 per cent of the whole, and in 72 per cent. of the cases more than 7½ per cent. was allowed. Of course, the allowances cannot exceed actual expenditure claimed for; but the above figures show that where a claim for these deductions is fairly made it is the practice to allow it.