§ 32. Mr. Pageasked the Chancellor of the Exchequer if he will initiate legislation to assimilate the tax liability of the owner-occupier of a residential house with that of the owner-occupier of a residential houseboat, by relieving the former of liability for Schedule A Income Tax.
§ The Financial Secretary to the Treasury (Mr. J. E. S. Simon)My right hon. Friend has noted my hon. Friend's suggestion.
§ Mr. PageHas my hon. and learned Friend ever taken a steamer from outside the House up the Thames, and has he seen the small dwellings on the banks which are subject to Schedule A tax as against the palatial houseboats used as residences on the river which are free from tax? I am not suggesting that my hon. and learned Friend should impose a tax on houseboats but that he should do away with Schedule A tax altogether.
§ 33 and 34. Mr. Pageasked the Chancellor of the Exchequer (1) if he will issue a directive to inspectors of taxes that the maintenance and repair of portable heating apparatus, such as moveable electric fires, oil radiators, etc., shall be a deductible allowance against Schedule A tax in the same way as the maintenance and repair of fixed heating apparatus is a deductible allowance;
(2) if he will issue a directive to inspectors of taxes that the cost of returfing a lawn and replanting the flower bulbs in the garden of a dwelling-house be allowed as a maintenance deduction under Schedule A similarly to repapering the walls and replacing the electric-light fittings.
§ Mr. SimonNo, Sir. As my right hon. Friend the Chancellor of the Exchequer told my hon. Friend on 9th December, maintenance relief is given for expenses incurred by an owner, as owner, in keeping up his property, and not for expenditure to an occupier.
§ Mr. PageIs my hon. and learned Friend aware that the efficient way to heat a room is to put the heating apparatus near the window where cold air enters? One should not put a fixed fire there because of curtaining and, therefore, movable fires are the right things to use. Is not it illogical that maintenance of such fires should not be allowed against Schedule A tax?
With regard to Question No. 34, is my hon. Friend aware that the comparison which I was making was renewing flower bulbs as against renewing electric light bulbs, but I was informed by the learned 616 Clerks at the Table that I must not be ironical. Is not it ironical that a garden should be taken into account in assessing property for Schedule A tax but the maintenance of it is not allowed as a deductible expense?
§ Mr. SimonThe question comes down to this: what can properly be regarded as a landlord's liability? It is for that reason that portable heating apparatus and movable electric fires are not allowed as a deductible item.
There is very little resemblance, except in name, between a flower bulb and an electric light bulb. I think that my hon. Friend is being carried away by the flowers that are now blooming in the spring.
§ Mr. PageIs it not the tenant who is assessed to Schedule A tax? Why should it be only the landlords' liabilities which are taken into account in maintenance claims?
§ 36. Mr. Hunterasked the Chancellor of the Exchequer what he estimates would be the annual amount of repayments of post-war credits over the next five years, if the age for the repayment were reduced to 64, 63, 62, 61 and 60 years, respectively; and if he will give his consideration to this method of repayment.
§ Mr. SimonI assume that the hon. Member has in mind reductions of one year in the qualifying ages for both men and women. The amount of annual repayments would on this assumption he about £35 million a year. I have noted the hon. Member's suggestions.
§ Mr. HunterWill the hon. and learned Gentleman bear in mind that many people have been waiting nearly 15 years for the payment of post-war credits? The method which I suggest would be an honest attempt to start paying the amounts which are owing.
§ Mr. SimonI have noted this suggestion as one of the methods by which the payment of post-war credits could be accelerated.
§ Mr. GaitskellWould the hon. and learned Gentleman convey to the Chancellor of the Exchequer that this year appears to be exceptionally appropriate for the repayment of post-war credits? In 617 defending the failure to repay them more rapidly, it was always understood that they could be held against the danger of a trade recession. Does the hon. and learned Gentleman appreciate that there are special advantages in this method, because the repayment would be a once-for-all affair and therefore would not involve future complications, as other reductions in taxation inevitably do?
§ Mr. SimonI will draw the remarks of the right hon. Gentleman to the attention of my right hon. Friend.
§ 38. Wing Commander Bullusasked the Chancellor of the Exchequer what would be the financial saving in administrative collection of Schedule A tax if this tax were abolished; and how many staff would be released for other duties.
§ Mr. SimonThis would depend on the extent to which staff released by the abolition of Schedule A would need to be employed on alternative arrangements for assessing and collecting tax on income from property.
§ Wing Commander BullusIt would give much relief if this tax were abolished. Will my hon. and learned Friend make urgent representations to his right hon. Friend the Chancellor to give urgent consideration to abolishing the tax? Many would-be home owners would be encouraged by its abolition.
§ Mr. SimonThere seems to be considerable difference of view as to the Schedule A tax on owner-occupiers, but I will certainly draw to my right hon. Friend's attention what my hon. and gallant Friend has said.
§ Mr. JayHas the Financial Secretary considered the alternative of exempting the first so many pounds of Schedule A from Income Tax and thus benefiting mainly the smaller owner-occupiers?