HC Deb 08 November 1932 vol 270 c190
50. Captain DOWER

asked the Chancellor of the Exchequer if, in view of the numerous cases of owners of property or head lessees remitting part of the rent due to them in order to assist occupiers of business or residential premises to tide over the financial depression, he will issue instructions to income tax assessors or collectors not to charge property tax upon such remission?


I regret that I cannot see my way to adopt my hon. and gallant Friend's proposal. The property owner would not in the circumstances suggested bear tax upon more than the reduced amount of rent paid to him. I may also point out that a tenant of business premises is entitled in computing his profits for assessment; to Income Tax to deduct not only the rent actually paid to his landlord but also any excess of the net Schedule A assessment upon the premises over the amount of that rent. In the case of residential premises any excess of annual value represents of course part of the tenant's total income for tax purposes, and this total income is subject to all the usual reliefs—reduced rate of tax, personal allowances, etc.

Captain DOWER

Is my right hon. Friend aware that the tax officials say that the question whether the tax should be charged on the remitted rent is in their discretion?


I am not sure whether the hon. and gallant Member is referring to the owner or the tenant of the property. As I have pointed out, the owner of the property does not pay tax on the remitted rent.