§ 41. Mr. WATTasked the Chancellor of the Exchequer whether he is aware that his Department, in dealing with profits from letting of furnished houses in coast and other health resorts, refuses to allow as a deduction for Income Tax the rent of another 31 furnished house taken by the lessor while his own house is let; and, if so, whether he can see his way, in view of the hard times suffered by such health resorts since the War, to permit of such rent paid being a deduction on the profits?
§ The CHANCELLOR of the EXCHEQUER (Mr. McKenna)I am aware of the practice referred to, which is governed by the Rules of Schedule D of the Income Tax Acts, and which has, moreover, been confirmed by the decision of the Court of Session (Scotland). The circumstances referred to by my hon. Friend would not warrant the treatment of the personal cost of living business expense.