HC Deb 23 June 1942 vol 380 cc1813-4
53. Sir J. Mellor

asked the Chancellor of the Exchequer whether he is aware of the hardship under war conditions, caused by the decision in 1913 in the case of Wylie v. Eccott and the disallowance by the Inland Revenue of the expense of living elsewhere as a deduction from the profit of letting a furnished house; and whether he will take steps to provide relief where householders have temporarily changed their place of residence in connection with work of national importance?

Sir K. Wood

I am unable to agree that hardship is caused by the decision of the court to which my hon. Friend refers. Income arising from letting a house furnished is clearly chargeable to Income Tax, and it would be contrary to the principles of the Income Tax to allow a deduction in respect of living expenses.

Sir J. Mellor

Does my right hon. Friend recognise that the present position acts as a deterrent to many people from leaving their homes in order to take up war work?

Sir K. Wood

No, Sir. This case simply decided that a person assessed under Schedule D in respect of profits derived from letting a house furnished was not entitled to deduct the amount of the rent paid by her for another furnished house in which she lived while her own was let.

Sir J. Mellor

But people have to find somewhere else to live if they leave their place of residence to take up work.