HC Deb 18 April 1946 vol 421 cc2884-5
61. Mr. David Jones

asked the Chancellor of the Exchequer whether he has considered the effect on ratepayers in areas which are controlled by joint water boards, in view of the decision to include precept income for taxation purposes and if he proposes to take any action to put this matter right.

Mr. Dalton

The effect of the decision of the courts to which my hon. Friend refers is that, in the case of a joint water board, any income received under precept from the local authorities of the area is treated as a trading receipt of the Board for tax purposes, but any amounts paid by the Board under precept to other water undertakings are allowed as deductions. I do not think any amendment of the law is called for.

Mr. Jones

Does my right hon. Friend realise that the effect of this decision on those local authority areas that are comprised within joint water boards will, in fact, mean that the precept income from the rates will have to be doubled in order to meet this decision?

Mr. Dalton

Perhaps my hon. Friend will have a talk with me on how it works out in particular cases, but my personal opinion is that the law as it stands is fair.