HC Deb 25 February 1960 vol 618 cc548-9
5. Mr. W. Clark

asked the Chancellor of the Exchequer to what extent it would facilitate administration if Schedule A tax were abolished on all rented property and the net income therefrom assessed under Schedule D, instead of as at present taxing one source of income under two Schedules of the Income Tax Acts.

Sir E. Boyle

There is not enough information for an estimate, but the cost of administration would almost certainly be greater than at present.

Mr. Clark

Would my hon. Friend agree that it would be generally welcomed by all professions in the property business if rented property were to be assessed under one Schedule rather than under two, as at present—and, possibly, without any loss of revenue?

Sir E. Boyle

My hon. Friend's Question refers specifically to administration, and the point is that the administrative costs would be expected to rise under his proposal, because the particulars of maintenance expenditure would have to be examined in every case.

Mr. Wade

Would not the hon. Gentleman agree that Schedule A tax is open to objections on grounds other than those of administrative complexity? For example, a landlord may not spend anything at all on repairs and maintenance but still get the statutory allowance. On the other hand, the owner-occupier may spend a great deal more than the statutory allowance but, because he does not know the law, may not reclaim what he is entitled to. Would not the simplest thing be to abolish Schedule A tax altogether?

Sir E. Boyle

That raises rather wider issues. Perhaps the hon. Gentleman will put some of those other questions on the Order Paper.