HC Deb 30 June 1908 vol 191 c590
MR. BOTTOMLEY

I beg to ask Mr. Chancellor of the Exchequer whether income-tax is at present charged upon fines and premiums demanded by ground landlords upon the expiration of leases as a condition of their renewal.

MR. ASQUITH

Income-tax is assessed on fines which fall within the charge imposed by the 5th Rule of No. II., Schedule A., Income-Tax Act, 1842. A premium charged on granting an ordinary lease for years, which carries with it no right to the renewal of the lease, is not treated as a fine within the meaning of the Rule.

MR. BOTTOMLEY

Then the Answer means that when a landlord inflicts a heavy fine for the renewal of a lease he pays no income-tax on it?

MR. LLOYD-GEORGE

That depends on the position dealt with in the last part of my Answer.