HC Deb 01 May 1958 vol 587 cc556-7
15. Mr. Page

asked the Chancellor of the Exchequer what he estimates would be the saving in Inland Revenue staff salaries if taxpayers assessed to Income Tax, Schedule A, were entitled to claim as an allowance the tax so assessed for any period of residential occupation of the property by the taxpayer, his wife or other dependent relative, bearing in mind that maintenance claims on such property would then be unnecessary.

Mr. Simon

On the assumption that my hon. Friend's Question is directed to the abolition of tax under Schedule A for residential owner-occupiers, giving that term a slightly extended meaning, the saving might be of the order of £½ million.

32. Mr. Barter

asked the Chancellor of the Exchequer what he estimates to be the proportion in the latest convenient year of owner-occupied residential properties in respect of which claims for maintenance against Income Tax, Schedule A, assessments are not made.

Mr. Simon

About eleven-twelfths in 1957–58.

Mr. Barter

Does not my hon. and learned Friend agree that this high proportion indicates that many people who could make claims are not doing so, possibly because they are unaware that they can do so, and that if, in fact, they did claim it would substantially increase the amount refunded?

Mr. Simon

To some extent, the small proportion may be due to ignorance of the procedure, but not entirely, because there is the statutory deduction. Of course, if more claims were made, the yield would be less.

Mr. Page

What would be the return of Schedule A tax if all claims were made? Would it not, in fact, be a very small sum? Under those circumstances, will not the Chancellor consider abolishing Schedule A tax altogether?

Mr. Simon

In the absence of claims, it is impossible to quantify them.