HC Deb 26 June 1917 vol 95 cc202-3
55. Mr. FFRENCH

asked whether occupiers of land in Ireland who have signed agreements for the purchase of their holdings under the 1903 or subsequent Land Purchase Acts, but in whom their holdings have not yet been vested by the Land Commission, are assessed for Income Tax as owners and also as occupiers; and, if so, can he state why they are assessed as owners before the sales have been completed and ownership vested in them?

Mr. BONAR LAW

The execution of the agreement to purchase has the effect of transferring the equitable ownership of the land to the purchasing occupier, who is chargeable to income tax accordingly, but an allowance is made from the assessment in respect of the interest payable by him to the Land Commission.

Mr. FFRENCH

Not having fully heard the answer, may I ask whether any decision in law has been taken as to whether it is the landlord, who is still the owner, or the occupier who should pay the owner's Income Tax?

Mr. BONAR LAW

As I understand it the question is of no importance for this reason, that although the tenant is liable, he has an allowance on the purchase instalment equivalent to the amount he pays.