HC Deb 11 July 1938 vol 338 cc1018-9

Where the profits arising from lands occupied as nurseries or gardens have, in pursuance of Rule 8 of the rules applicable to Schedule B, been estimated according to the provisions and rules applicable to Schedule D but assessed under Schedule B, an appeal against the assessment may be made to the Special Commissioners instead of to the General Commissioners under Section one hundred and forty-eight of the Income Tax Act, 1918; and accordingly Subsection (1) of that Section shall have effect as if the following paragraph were inserted immediately after paragraph (b) thereof: (c) an assessment under Schedule B made in pursuance of Rule 8 of the rules applicable to that Schedule."—[Sir J. Simon.] Brought up, and read the First time.

Sir J. Simon

I beg to move, "That the Clause be read a Second time."

This is to deal with a defect, or, at any rate, an inconsistency, in the present Income Tax code, which I think, we should agree to remedy. Market gardeners are charged to Income Tax under a particular rule of Schedule B, according to the rules of Schedule D, that is to say, on their profits. In other cases, persons who are assessed for tax under Schedule D have the choice as to whether they shall appeal to the general commissioners or the special commissioners. At present, by a curious operation of the Section, market gardeners, although assessed according to the rules of Schedule D, have no such right of appeal to the special commissioners, but only to the general commissioners. One question that arises from time to time is as to whether certain people are market gardeners. It is very desirable that there should be uniformity in decisions on this question. If you simply compel them to appeal to local commissioners, you may get different interpretations in different parts of the country. On the other hand, if they may appeal to the special commissioners, you may get uniformity. I have reason to believe that this will be welcomed by market gardeners; in fact, I have had a communication pointing out that the law was very hard in this respect—and although it is a mere matter of machinery, and not of very great importance, I hope the House will agree to this Clause.

7.50 p.m.

Mr. Bellenger

I take it that if the House accepts this Amendment market gardeners will continue to be assessed under Schedule B, with the qualification that they might be assessed also under Schedule D, and that the only difference this will make is that they will have the right to appeal to the special commissioners.

Sir J. Simon

That, I think, is right; but I must be entirely clear. These things, as the hon. Member knows, are sometimes very confusing. Really they are assessed under Rule 8 of the Rules applicable to Schedule B.

7.51 p.m.

Mr. Pethick-Lawrence

This is obviously a technical question, which had better be put right. Have these people the option as to which commissioners they may appeal to?

Sir J. Simon

Yes, they have the option.

Mr. Pethick-Lawrence

I have nothing further to say. It is a matter of small technical adjustment.

Question, "That the Clause be read a Second time," put, and agreed to.

Clause read a Second time, and added to the Bill.