§ 37. Brigadier-General CLIFTON BROWNasked the Chancellor of the Exchequer whether, as a temporary measure and in order to assist employment in rural areas, he will consider extending the scope of the maintenance claim to include improvements on agricultural holdings in cases where such improvements are approved by a county agricultural committee and where no increase of rent is involved?
§ Mr. HORE-BELISHALegislation would, of course, be necessary before effect could be given to my hon. and gallant Friend's suggestion. But in any case I must point out to him that his proposal contravenes one of the basic principles of the Income Tax, namely, that capital expenditure is not allowable as a deduction from income for tax purposes.
Brigadier-General BROWNIn view of the difficulty in distinguishing between capital expenditure and necessary expenditure to keep up income from rents in such things as piping water supplies to cottages or Dutch barns for agricultural holdings, now treated as improvements, and not part of maintenance, could not the hon. Gentleman enlarge the scope of present maintenance claims, as these things would give a great deal of local employment, and it would be an inducement, to owners to carry them out immediately?
§ Mr. HORE-BELISHAThe law, I think, is precise upon the point.
§ Lord APSLEYWill the hon. Gentleman draw the attention of the Chancellor of the Exchequer to the very hard way in which this question is bearing on the whole of the rural districts of this country, and will it not be possible to deduct capital expended in maintenance at any rate from Death Duties, which are on capital?
§ Mr. HORE-BELISHAI will willingly draw my right hon. Friend's attention to any suggestion of my Noble Friend, but legislation would be necessary to change the present position.