HC Deb 09 May 1918 vol 105 cc2324-5
66. Major WHELER

asked whether, in view of the fact that the value of farmhouses is taken into account in fixing the rent of farms, he will issue instructions that, where farmers are paying Income Tax on the basis of a double rental, a deduction shall be made of the value of their farmhouses, so that houses inhabited by farmers shall not pay Income Tax on double their rental value?


The Budget proposal is to measure the farmer's profits on the basis of double the annual value of the farm, including the farmhouse, which is comprised in the letting. As I have repeatedly stated if in any case the actual profits fall short of the Statutory measure the farmer will be able to obtain a corresponding reduction so as to bear tax upon no more than the profits made.


Is it a fact that any farmer who cannot come under Schedule B will have to pay double on his farmhouse?


Yes. He will have to pay double the total value of what he has left, which includes the farmhouse.

Captain Sir B. STANIER

Does the right hon. Gentleman think it is fair that farmers should be called upon to pay double on the house when it is not part of the business premises?


It may not be fair taken by itself, but it is certainly fair if they have the option of being taxed in precisely the same way as everyone else.