§ 51. Major PAGETasked the Chancellor of the Exchequer, in view of the assur- 222 ance that assessments are to be made on the actual rents received, whether this applies to property let on a lease for over seven years; and is he aware that assesments are being made on leasehold property above their actual value.
§ Sir W. JOYNSON-HICKSAs I have previously explained in reply to hon. Members, the reassessment for Income Tax purposes is being made in accordance with the old-established law under which the annual value of property is the rack-rent at which it is let, or is worth to be let, by the year. In cases where property is let at a rack-rent fixed by agreement within the preceding seven years, the annual value is by law fixed at the amount of the yearly rent. In other cases where property is not let at a rack-rent so fixed, it is necessary to ascertain the rack-rent at which the property is worth to be let by the year.