§ Mr. ROYDSasked whether the county councils have based the rents payable to them on small holdings at such sums as will only provide the annual payments to the Public Works Loan Board and the expenses of management; and whether the Chancellor of the Exchequer will therefore give direction for the demands for Income Tax on the rents received to be withdrawn?
§ Mr. HOBHOUSEI have no information as to the action of the county councils referred to in the first part of the hon. Member's question. As regards the second part, the answer is in the negative; but at the same time I may explain that exemption is authorised in respect of such part of the rent as is payable to the Public Works Loan Fund for interest.
Major WILLOUGHBYasked whether the Chancellor of the Exchequer had sanctioned the issue of demand notes to county councils requiring payment of Income Tax on rent received from tenants of small holdings purchased by councils under the Small Holdings and Allotments Act, 1908, which, if paid, would necessitate such councils raising the rents of their tenants to provide for the payment of such Income Tax?
§ Mr. HOBHOUSEAssessments to Income Tax, Schedule A, are made by, and demands for payment of duty are issued under the authority of, the District Commissioners of Taxes in accordance with the provisions of the Income Tax Acts; and my right hon. Friend has no power to interfere with their responsibility.
§ Mr. HOBHOUSEI have never heard of such a proposition.