HC Deb 25 May 1937 vol 324 cc106-7
29. Mr. Crowder

asked the Chancellor of the Exchequer the number of properties in the borough of Finchley in which the valuation for Schedule A purposes is higher than the assessment for rating purposes?

Mr. Chamberlain

I regret that the information for which my hon. Friend asks is not available and could not be obtained without a disproportionate expenditure of time and labour.

30. Mr. Crowder

asked the Chancellor of the Exchequer whether he will give a list of the principal factors, apart from the rating assessments, which are taken into account in determining the value of property for Schedule A purposes?

Mr. Chamberlain

The Income Tax Acts provide, broadly speaking, that the annual value of property for the purposes of assessment to Income Tax under Schedule A is the rack rent at which it is let or is worth to be let by the year. In the main, therefore, the Income Tax assessment is governed by the rent actually paid for the property assessed. As regards properties occupied by the owner, it is commonly the case that a fair estimate of the annual value is readily obtainable by reference to the actual rents paid for similar adjoining properties.

Mr. Crowder

Is my right hon. Friend aware that the local authorities go to infinite trouble in trying to get their assessments uniform throughout their districts, and even go to the length of measuring up the rooms; and that the revenue authorities do not even visit the properties when they make their assessments; and that in nine cases out of ten the revenue authorities assess properties at a larger value than that at which they are assessed for rateable purposes?

Mr. Chamberlain

My hon. Friend is aware that there are different principles according to whether the assessment is made for purposes of rating or for purposes of Schedule A. As I pointed out, Schedule A assessments are based primarily on the actual rent paid, whereas the rating assessments are based on the annual value of the property.