§ Mr. MacDermot
I beg to move, Amendment No. 62, in page 32, line 17, at the end to insert:(10) If as respects a gain accruing to an individual so far as attributable to the disposal of, or of an interest in, a dwelling-house or part of a dwelling-house which is, or has at any time in his period of ownership been, the sole residence of a dependent relative of the individual, provided rent-free and without any other consideration, the individual so claims, such relief shall be given in respect of it and 1752 its garden or grounds as would be given under this section, if the dwelling house (or part of the dwelling-house) had been the individual's only or main residence in the period of residence by the dependent relative, and shall be so given in addition to any relief available under this section apart from this subsection:Provided that—
- (a) not more than one dwelling-house (or part of a dwelling-house) may qualify for relief as being the residence of a dependent relative of the claimant at any one time nor, in the case of a man and his wife livng with him, as being the residence of a dependent relative of the claimant or of the claimant's husband or wife at any one time, and
- (b) the inspector, before allowing a claim may require the claimant to show that the giving of the relief claimed will not under proviso (a) above preclude the giving of relief to the claimant's wife or husband or that a claim to any such relief has been relinquished.In this subsection "dependent relative" means, in relation to an individual, a relative of the individual, or of his or her wife or husband, who is incapacitated by old age or infirmity from maintaining himself, or the mother of the individual or of his or her wife or husband, if the mother is widowed, or living apart from her husband, or, in consequence of dissolution or annulment of marriage, a single woman.
It is proposed that with this Amendment we should take Amendment No. 63. I understand from Mr. Speaker that there may be a Division on No. 63 if required. Amendment No. 63 is in page 32, line 17, at the end to insert:(10) This section shall also apply in relation to a gain accruing to an individual on a disposal of, or an interest in—
- (a) a dwelling-house or part of a dwelling-house which is or has at any time during the period of his ownership been the only or main residence of a dependent relative of his, or
- (b) land which he has for the occupation and enjoyment of the dependent relative with that residence as its garden or grounds up to an area (inclusive of the site of the dwelling-house) of one acre as it would apply if neither the individual nor the wife or husband of the individual occupied any other residence and the occupation of his dependent relative had been his occupation.In this subsection, "dependent relative" means a relative of the individual or of the wife or husband of the individual who is incapacitated by old age or infirmity from maintaining himself, or the widowed mother, whether incapacitated or not, of the individual or of the wife or husband of the individual.(11) The exemption contained in the last preceding subsection will not apply to a gain accruing to an individual on the disposal of or an interest in more than one dwelling-house or part of a dwelling-house.
§ Mr. MacDermot
This Amendment implements an undertaking which I gave in Committee that we should introduce an Amendment to extend the owner-occupier's exemption for his permanent place of residence to include a residence which he provides for a dependent relative. May I point out to the Committee one or two points about the form of the Amendment which we are proposing?
First of all, we propose that it should be a condition of the relief that the dependent relative must occupy the house rent-free without paying any other consideration. What we have in mind is the case of somebody who is providing a house for an impecunious or dependent relative, and it is not intended to apply to something which is let on a commercial basis.
Secondly, if the other conditions are satisfied the house is to be treated as if the dependent relative's occupation of it had been the owner's occupation of it as a principal private residence. As a consequence of this, various tolerances which apply in Clause 28 to his own house will also apply to the other house. For example, the 12-month period provided by subsection (2) to allow the house to be sold after the owner has moved out of occupation will also apply for the benefit of the owner in the case of the dependent relative's house. Equally, the three-year tolerance for the period of absence will apply; if the dependent relative is ill and has to go into hospital for a prolonged period, this will not deprive him of his rights.
Thirdly, as I suggested in Committee, only one dependent relative's house can qualify at any one period of time. We have framed the provision so that it could apply to more than one house in sequence but only to one at any particular time.
Finally, we have given a wide definition to the term "dependent relative"—somewhat wider than the dependent relative allowance definition. Apart from individuals who are incapacitated by old age or infirmity from maintaining themselves, the definition also includes the mother of the individual if widowed or separated or divorced and whether or not she is incapacitated. That goes slightly 1754 further than the original proposal, but I hope that it is an extension which will commend itself to the House.
§ Mr. John Hall
The Amendment does, as the hon. and learned Gentleman said, give effect to a promise made during the Committee stage of the Bill in reply to an Amendment moved from this side. Our Amendment No. 63 was put down really to protect the position, but we have no intention of pressing it. Although one might have different views as to the best way of achieving this object, we would accept the Government Amendment as it stands.
As the hon. and learned Gentleman said during the Committee stage, it is an illogical addition to the Bill, but then, of course, the Income Tax Act is sometimes improved by a few illogical humanities being put into it. We are delighted that the hon. and learned Gentleman has given effect to what he promised and expanded it slightly.
§ Amendment agreed to.