§ MR. REES (Montgomery Boroughs)To ask Mr. Chancellor of the Exchequer whether he is aware that owners of small cottage properties, who are assessed to income-tax upon the nominal rental of their cottages, or some figure approximating to such rental, are compelled to pay income-tax at that rate, notwithstanding the fact that their actual receipts, though their cottages are occupied, may after payment of local rates and repairs fall very far short of the amount upon which assessment is made; and whether in view of the need for encouraging small holders, he will consider whether the tax cannot be levied in proportion to the rent actually received in any given year.
§ (Answered by Mr. Asquith.) Property of the kind referred to is by Law chargeable to income-tax on its annual value, less the statutory deductions for repairs and other outgoings allowed by Section 35 of the Finance Act, 1894. The Computation of annual value is naturally based upon the gross rental of the property, but deductions are allowed for any rates or other tenants' burdens which are payable by the owner, and further allowances may be claimed in respect of any periods for which the property is unoccupied or the rent is irrecoverable.