§ 57. Sir W. Davisonasked the Chancellor of the Exchequer whether his attention has been called to the serious hardship suffered by authors who often take many years in the production of a book, at the end of which period the book is sold for a considerable sum of money, when they are assessed to Income Tax in respect of such lump-sum payment at the highest scale, notwithstanding the fact that during the years of production they have been without income; and whether, in these circumstances, provision will be made to enable the tax payable to be assessed on a spread-over basis covering the years of the production of the work?
§ Lieut.-Colonel ColvilleI regret that I am unable to adopt my hon. Friend's suggestion, which would involve a departure in the case of fluctuating incomes of a particular profession from the general principles which govern the assessment of professional income.
§ Sir W. DavisonIs the Minister aware that an author in the circumstances stated in the question, often has to give up half the lump sum payment which he or she receives, although it may have taken five or six years to produce the work, and although during that time the author has had no income whatever from it?
§ Lieut.-Colonel ColvilleI am aware that this is a question which has been considered from time to time, and that it has not been found possible to meet the case, without departing from the general principles governing Income Tax.
§ Sir W. DavisonThen the principle in this case is wrong?
§ Mr. CrossleyIs the right hon. and gallant Gentleman aware that books which take five or six years to produce usually have very small sales?