§ 72. Mr. SUGDEN
asked the Chancellor of the Exchequer if he will cause instructions to be issued that, where a workman is purchasing his cottage by mortgage on which he is paying interest at, say, 5 per cent. clear, if his total income is under £120 a year he shall be charged at the proper rate and not at 6s. in the £, as at present obtains?
A taxpayer whose total income does not exceed £130 is personally exempt from Income Tax. Where he pays mortagage interest on his house the Income Tax chargeable in respect of the interest is collected from him and he is entitled by law to deduct it from the payments of interest to the mortgagee. In such a case he deducts the full amount of the tax which is charged at the standard rate.
§ Mr. SUGDEN
If I give the right hon. Gentleman the names of men who have actually followed the procedure mentioned in the question will he see that his instructions are followed?
I do not understand in what respect, not my instruction, but the law has been broken, but if the hon. Member communicates with me I will look into any case he likes to submit.