MR. DUNDAS WHITE (Dumbartonshire)To ask Mr. Chancellor of the Exchequer with reference to the gross annual value and the net annual value referred to in the headings on page 79 of the Annual Report of the Commissioners of Inland Revenue for 1907–8 [Cd. 4226], if he will say what relations these annual values, respectively, bear to the annual values of the subject referred to as adopted for income-tax purposes.
(Answered by Mr. Lloyd-George.) For Estate Duty purposes the gross annual values, in the table to which my hon. 937 friend alludes, are the actual rentals where the properties are let and the gross annual values as ascertained for purposes of income-tax where the properties are unlet. The net annual values for purposes of Estate Duty are the gross annual values minus necessary outgoings, with, in the case of agricultural property, a deduction not exceeding 5 per cent., for expenses of management. For income-tax purposes, the gross annual value is substantially the same as that for Estate Duty purposes, but a net annual value would somewhat exceed that shown in the table referred to, as practically the only similar income-tax deduction from the gross annual value are the statutory allowances granted by Section 35 of the Finance Act, 1894.