HC Deb 03 February 1948 vol 446 cc1641-2
71. Mr. Marples

asked the Financial Secretary to the Treasury what is the range of rates of simple interest upon which the Inland Revenue base their Tables of Annual Equivalent of Premiums.

The Financial Secretary to the Treasury (Mr. Glenvil Hall)

I assume the hon. Member has in mind the method of arriving at the annual value of property for Income Tax, Schedule A, where the tenant pays a premium in addition to the rent. The local Commissioners of Income Tax are the assessing and appellate authority for Schedule A tax, and it rests with them to determine what a premium represents in annual value. The Inland Revenue's estimates in such cases vary according to local conditions but are normally based on rates of interest running from 4 to 6 per cent.

Mr. Marples

How can the right hon. Gentleman reconcile rates of interest of from four to six per cent. with the Government's cheap money policy?

Mr. Glenvil Hall

We are dealing with two different things. Here we are dealing with the basis upon which annual rent is formed. The basis taken is old-established, and the courts have agreed to it.

Mr. Marples

Will the right hon. Gentleman consider reducing the average rate of interest from 5 per cent., which is used in these tables, to the 3 per cent. which the Government have in mind for Transport Stock?