§ 40. Mr. SKELTONasked the Chancellor of the Exchequer whether he is aware that some property owners have been in the habit of presenting their claims for relief from Income Tax, Schedule A, in respect of maintenance expenditure, after payment of the first instalment of tax for the year to which the claim relates, but in time to have the relief allowed as a set-off against the second instalment of tax falling due in July; and whether, in future, it will be necessary for the property owners in question to pay the whole of the Schedule A tax in January and to obtain any relief to which they may be entitled in respect of maintenance expenditure by way of repayment of tax?
§ Mr. CHURCHILLThe answer to the first part of the question is in the affirmative. In view of the fact, however, that claims for relief in respect of expenditure on maintenance, etc., are required to be based upon the average expenditure incurred in the five years preceding the year of assessment, it would appear that speaking generally property owners can, if they so desire, lodge their claims soon after the commencement of the tax year. Where that is done, no difficulty will usually arise in dealing with the claims in ample time to enable the relief to be set against tax due on 1st January.
Brigadier-General BROWNIs the right hon. Gentleman aware that in many cases maintenance claims are years in arrears?
§ Mr. CHURCHILLObviously, where they are years in arrears difficulty will arise. I am taking the opportunity of this question to give an answer which, if properly studied, will be found to afford a perfectly legitimate relief to a considerable section of the taxpayers who are specially affected by the financial proposals of the present year.