§ Mr. BRUNNERasked the Chancellor of the Exchequer whether his attention has been called to the fact that persons assessed for Income Tax under Schedule E are barred from the privilege of claiming to be assessed by the Special Commissioners; and whether he will give the necessary instructions so that they may have the same privileges as those assessed under Schedule D, including the right of declaring income on a three years' average?
§ The CHANCELLOR of the EXCHEQUER (Mr. Lloyd George)I am aware that the law does not empower the Special Commissioners of Income Tax to make assessments under Schedule E in respect of the incomes of persons in Great Britain other than railway officials. Assessments under Schedule E are in the majority of cases required to be made on the amount received during the year of assessment, and not on a three years' average, the salary being, as a rule, well defined and not liable to fluctuation from year to year. In the case, however, of subordinate officials with salaries more liable to variation, no objection has hitherto been raised by the Board of Inland Revenue if the District Commissioners of Taxes see fit to give the benefit of the three years' average as adopted for assessments under Schedule D. In the circumstances I am not satisfied that there are grounds for altering the existing practice.
§ Sir J. JARDINEasked the Chancellor of the Exchequer whether he can see his way to revise and consolidate the statutes relating to the Income Tax passed during the last fifty or sixty years so as to embody them in one statute?
§ Mr. LLOYD GEORGERevision and consolidation of the Income Tax Acts would undoubtedly prove useful, but would necessarily require much deliberation and discussion in Parliament, and I do not see my way in the near future to introduce such a Bill as the hon. Member suggests.
§ Sir J. JARDINEasked the Chancellor of the Exchequer whether he has received any complaints from manufacturing and commercial bodies regarding the inadequacy of the rates of allowance for depreciation of machinery, on the ground that since those rates were fixed by statute the tendency of construction of modern machinery has been to shorten the lives of machines; and, if so, whether he proposes to take any action in the matter?
§ Mr. LLOYD GEORGEComplaints regarding inadequacy of the rates of allowance for depreciation of machinery have been received from manufacturing and commercial bodies. The rates of allowance for wear and tear of machinery are not fixed by statute. The Commissioners, local or special, whose duty it is to assess the Income Tax on trade profits, are empowered by law to allow such deductions as they may think just and reasonable, and I understand that the amount of the deductions has increased very largely of recent years.
§ Mr. HARRY LAWSONMay I ask the right hon. Gentleman whether he is aware that the late Financial Secretary to the Treasury promised there would be an inquiry into this matter at the Treasury and whether he will announce the result to the House?
§ Mr. LLOYD GEORGEIf the hon. Gentleman will tell me when, I will look it up.
§ Mr. HARRY LAWSONOn the Estimates?