§ 56. Sir WILLIAM BULL
asked the Chancellor of the Exchequer whether persons in making their annual return for Income Tax purposes can deduct from the gross amount the legal and other expenses incurred in the transfer of mortgages; and whether many of such transfers have been rendered necessary by the recent depreciation in house property and the consequent diminution of the mortgage security, and that in many cases such transactions are the only way to save the income from the property from extinction?
§ The CHANCELLOR of the EXCHEQUER (Mr. Lloyd George)
The expenses involved in transferring mortgages are not an admissible deduction from a person's gross income in determining his liability to Income Tax. I am not aware of the reasons which influence mortgagors and mortgagees in deciding as to the transfer of mortgages in particular cases.
§ 57. Sir W. BULL
asked the right hon. Gentleman if he can see his way to allow 1042 persons who possess property abutting on streets which have recently been made up under the Private Street Works Act to, deduct the sum expended on such making up from their return of total income for Income Tax purposes; and whether in cases where there are long flank frontages the amount payable in respect of making-up charges often amounts to more than a year's rental value of the property so charged?
§ Mr. LLOYD GEORGE
The sums paid by owners for paving charges in cases where there are long flank frontages are frequently heavy in relation to the annual value of the property. Such charges, however, are in the nature of capital expenditure in respect of permanent improvements normally tending to advance annual value, and are not a proper deduction to be made in arriving at a person's income for the purposes of Income Tax.