HC Deb 02 February 1943 vol 386 cc754-5
62. Sir Henry Morris-Jones

asked the Chancellor of the Exchequer whether he is aware that officers in the Services are being taxed on profits arising from the letting of their house furnished where it is shown that they are compelled, owing to the exigencies of the Services, to live away from home and have to pay an equivalent amount, or more, for alternative accommodation; and whether he will review the matter?

Sir K. Wood

Profits arising from the letting of a furnished house are clearly liable to Income Tax, and in the computation of those profits no deduction is admissible for the cost of alternative accommodation or any other living expenses. The fact that in present circumstances persons are compelled by the exigencies of their employment to live away from home does not warrant any alteration of the Income Tax position.

Sir H. Morris-Jones

Is the right hon. Gentleman aware that the decision in this matter was based upon Scottish law connected with profiteering out of letting furnished houses, and that it does not apply to officers in the Services who are compelled to live away from home and must secure alternative accommodation, making no profit on the transaction? In view of that fact, will he not review the situation?

Sir K. Wood

Perhaps my hon. Friend will let me have particulars of the cases he has in mind.

Mr. W. Brown

Will not the Chancellor qualify his answer in respect to civil servants who change their residence as the direct result of Government orders?

Sir K. Wood

I will look into any particulars that the hon. Gentleman may send me of cases he has in mind.