HC Deb 27 June 1938 vol 337 cc1656-8

"(1) Section twelve of the Finance Act, 1924 (which provides that the annual value of any premises for the purpose of the duty on any excise licence charged by reference to the annual value shall be the Income Tax value or, if no Income Tax value is applicable, an amount determined by the Commissioners), shall have effect subject to the following provisions:

  1. (a) in determining under paragraph (b) of Sub-section (1) of the said Section the annual value of any premises where no Income Tax value is applicable, no regard shall be had—
    1. (i) to any room or other part of the premises which has been added at any time after an excise licence was first granted in respect of the premises, or was included in the premises before an excise 1657 licence was first granted in respect thereof, solely for the purpose of affording protection in the event of hostile attack from the air, and is not occupied or used for any other purpose; or
    2. (ii) to any structural alterations or improvements of the premises (not being the addition of any such room or other part as aforesaid) made, at any time after an excise licence was first granted in respect of the premises, solely for the purpose of affording such protection;
  2. (b) in any case where—
    1. (i) regard has been had to the matters aforesaid in estimating the Income Tax value of the premises; or
    2. (ii) any part of the premises would, by reason that it is intended to be used and occupied for the purpose of such protection as aforesaid and is not used or occupied for any other purpose, be exempt from Income Tax under Schedule A if it were not let;
the person applying for the Excise licence may require the Commissioners to assess the annual value of the premises for the purposes of the duty as if there were no Income Tax value applicable.

(2) Where, in fixing the annual licence value of any premises under Sub-section (2) of Section forty-four of the Finance (1909–10) Act, 1910 (which provides that the annual licence value shall be the amount by which the annual value of the premises as licensed premises exceeds the annual value which the premises would bear if they were not licensed premises), the annual value which any premises would so bear is taken to be the annual value of the site thereof cleared of buildings, no regard shall be had, in computing the annual value of the premises as licensed premises to any of the matters referred to in paraFaph (a) of the last fore- going Sub-section."—[Captain Wallace.]

Brought up, and read the First time.

10.22 p.m.

The Financial Secretary to the Treasury (Captain Euan Wallace)

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

This new Clause provides for relief from liquor licence duties, in respect of air-raid protection works, corresponding to the relief from Schedule A Income Tax provided by the Inland Revenue Clause which the Committee has just passed. The retail liquor licence duties are in the main chargeable by reference to the Schedule A value under Section 12 of the Finance Act' of 1924, and it is clear that if we are going to provide relief from Schedule A Income Tax in respect of certain improvements made on premises with the object of providing air-raid protection, we ought not to take these improvements into account in the case of licensed premises when imposing the Excise licence duty. In the normal case the relief would be automatic because under the Inland Revenue Clause the value of the air-raid protection works is to be excluded from Schedule A values, but there are certain cases where the law provides that the licence duties shall be charged, not upon the Schedule A value, but upon an annual value fixed for the purpose by the Commissioners of Customs and Excise. There are two cases where this procedure obtains; first, where the Schedule A value is not applicable because the premises for Schedule A purposes do not coincide with the premises in respect of which licence duty is chargeable, and secondly where the Schedule A value is the amount of a rent paid by a brewer who rents a public house for the purpose of putting in a tied tenant or paid by a tied tenant under a lease. The Committee will appreciate that this new Clause follows naturally upon the one which has already been accepted and I hope they will incorporate it in the Bill.

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