§ 6. Mr. Page
asked the Chancellor of the Exchequer whether he will give an estimate of the cost of the quinquennial revaluation of rented property for Schedule A tax; and whether he is satisfied that such cost is justified having regard to the fact that, by virtue of the provisions for the collection of tax upon excess rents, the assessment for Schedule A tax is irrelevant to the amount of revenue collected.
§ Mr. Page
Before Parliament decides to reintroduce the revaluations, will my hon. and learned Friend consider whether it is really worth while continuing the two systems of collection of tax on Schedule A and on excess rents? Would not it be more economical to do away with Schedule A, collecting it all on total rents?
§ Mr. Simon
No, Sir. There may be respectable arguments for the abolition of Schedule A on owner-occupation, but 1296 this is not one of them. The income charged under Schedule A does not qualify for earned income relief, and it would be quite inequitable to abolish the Schedule A charge on owner-occupied business premises. The trader who occupies premises at a rack rent cannot claim earned income relief on so much of his gross income as is paid away in rent and deducted in arriving at his profits for Income Tax purposes, and there is no reason why more favourable treatment should be given to his competitor who owns his own premises. That point was made by the Royal Commission on the Taxation of Profits and Income, together with other arguments.