- (1) Where a direct or indirect contributor in respect of a contributory property who is a tenant of the property or whose interest therein is subject to a mortgage is entitled to an indemnity under the Fifth Schedule to, or this Part of, this Act, from any person as being at the relevant date his landlord or mortgagee, he may, without prejudice to any other method of recovery, deduct the amount of the indemnity from any instalment of rent or any payment (whether of interest or capital) under the
1447 mortgage, as the case may be, falling due to the said person on or after the date on which the contributor became entitled to the indemnity. - (2) Where, in accordance with subsection (1) of this section, any person makes a deduction from any instalment of rent or payment under a mortgage, so much of the instalment or payment as is represented by the deduction shall be treated as having been actually paid and the said person shall he acquitted and discharged thereof accordingly.—[Captain Crookshank.]
§ Brought up, and read the First time.
§ Captain CrookshankI beg to move, "That the Clause be read a Second time."
For this new Clause we are indebted to the hon. Member for North Battersea (Mr. Douglas), who called attention to the point. The Clause gives a statutory right to a tenant or mortgagor to deduct from his rent or mortgage payment any sum which he is entitled to recover from the landlord or the mortgagee. The second part of the Clause is necessary to make it clear that the income upon which the landlord or mortgagee is obliged to pay tax shall be the whole amount of his income, not the amount less the deduction. I should point out the importance of the words near the end of Sub-section (1). "falling due to the said person." The payments which the landlord or mortgagee is due to make are personal payments. It would not be possible to make the deduction from the subsequent owner or landlord or mortgagee, because the obligation would not be upon him but upon the original one.
§ Question put, and agreed to.
§ Clause read a Second time, and added to the Bill.