HC Deb 29 April 1907 vol 173 cc536-7
MR. J. MACVEAGH (Down, S.)

I beg to ask the Secretary to the Treasury whether his attention has been called to the fact that the Revenue authorities have declined this year to return to Messrs. Swinburn, Green, and Herron, of Stanley, county of Durham, the income-tax on the bank interest earned in connection with thirty miners' cottages built by them; whether he is aware that the interest was returned in previous years, and that the only reason given for departing from the practice is that the investment was speculative; whether he is aware that the houses were built to be retained and not to be sold, and, if so, on what grounds the investment is held to be speculative; and whether, having regard to the fact that the assessed income of the property is £304, and that the Revenue has received income-tax on £415, he will give directions for the overcharge to be refunded.

MR. RUNCIMAN

The claim in question was refused on the ground that the interest was paid in respect of a single speculative transaction, in which case the Board of Inland Revenue do not recognise any title to repayment of income-tax on the part of the person paying the interest. If, however, asis now understood to be the case, the building operations have ceased and each of the gentlemen named is in receipt of a fixed, share of the rents from the property, which is duly assessed to income-tax under Schedule A and out of which the interest is paid to the bank, the Board of Inland Revenue inform me that they will be prepared to consider a claim for repayment of the tax on such interest, provided they are satisfied that the claimants have borne tax upon the whole of their incomes. I understand that the Board is in communication with the claimants on this subject.