§ 17. Mr. R. MORRISONasked the Chancellor of the Exchequer whether he is aware that many persons who are purchasing their houses through the Small Dwellings Act, building societies, and on the instalment system, are being served with notices to pay Income Tax 1411 under Schedule A (Property Tax) although their incomes are below the Income Tax limit; and, in order to remove their doubts, will he make a statement on this matter?
§ The FINANCIAL SECRETARY to the TREASURY (Mr. Ronald McNeill)If a house-owner's income is of such an amount that he is not liable to Income Tax, he can claim exemption from any tax under Schedule A charged in respect of his property. Where the property is subject to annual charges, such as ground rent or mortgage interest, the exempt owner will merely be called upon to pay to the Revenue the tax which he deducts from his ground landlord or mortgagor, upon whom, and not upon the owner, the, charge of such tax therefore falls. If the hon. Member has in mind any case in which it is alleged that an exempt owner is being called upon to pay—and ultimately to bear—Income Tax under Schedule A in respect of his property, and will furnish me with the necessary particulars, I will gladly have the matter investigated and will, in due course, communicate to him the result.