HC Deb 16 June 1942 vol 380 cc1379-81
51 Major C. S. Taylor

asked the Chancellor of the Exchequer (1) what powers are invested in local inspectors of taxes to remit or defer the payment of contributions under the provisions of the War Damage Act;

(2) whether he will consider the setting-up of machinery to investigate cases of hardship to owners and occupiers of property which may occur in evacuated areas due to the provisions of the War Damage Act with a view to the remission or part remission of contributions in place of the deferment provided; and

(3) whether, in order to alleviate some of the hardships in evacuated areas he will permit the War Damage contribution to be charged as an expense for Income Tax purposes?

Sir K. Wood

Collection of the War Damage contribution is entrusted to the Collectors of Taxes, and not to the Inspector of Taxes, by whom the contribution is assessed. As my hon. and gallant Friend is aware, arrangements are already in operation under which the collectors allow payment of the annual contribution to stand over or to be made by suitable instalments, as the circumstances of the individual case may require, where it is shown that the owner is unable to pay the contribution as it falls due. I am satisfied that the difficulties of owners of properties in evacuation areas are adequately met by those arrangements. I fear that I could not contemplate in their case a special remission of the charge or a departure from the general rule, which Parliament has approved, that the contribution is not to be allowed as an expense for Income Tax purposes.

Major Taylor

Does my right hon. Friend appreciate that some of these persons affected have large sums of money piling up as debts which they have very little possibility of meeting?

Sir K. Wood

My hon. and gallant Friend is advised to get in touch with the officers concerned, who will endeavour to to come to some arrangement.

Major Taylor

Has anyone any power to give this remission? A deferment can be made, but that is again piling up a large sum of money all the time.

Sir K. Wood

As I said in my answer, I think that the existing arrangements are adequate.