HC Deb 21 June 1921 vol 143 cc1318-9

If an incumbent is liable to repay annual instalments to Queen Anne's Bounty in respect of a loan granted to his predecessor for the purpose of the repair or restoration of his dwelling-house he shall be allowed to deduct such instalments from the amount of his assessable income.—[Major Birchall.]

Brought up, and read the First time.

Major BIRCHALL

I beg to move, "That the Clause be read a Second time."

Here, again, the proposal was recommended by the Royal Commission. The position is this, that an incumbent frequently comes into a benefice on which is charged a mortgage which has been raised by a previous incumbent, and the mortgage is repayable by annual instalments of capital and interest. We ask that he may be allowed to deduct the amount of the repayment from his Income Tax assessment.

Mr. YOUNG

I am afraid it is not possible to accept this Amendment. It is a small Amendment, but it hits up against a big principle. To admit reductions of annual instalments in the case of Queen Anne's Bounty would be contrary to the principle upon which the whole Income Tax is based, that no allowance must be made from income by way of exemption to tax in respect of capital outlay or repayment of capital. As to the hardship of the present incumbent being assessed in respect of a loan of a predecessor, the incumbent must have taken that into account when he accepted the position.

Question, "That the Clause be read a Second time," put, and negatived.