HC Deb 14 December 1971 vol 828 cc243-4
14. Mr. Ashton

asked the Chancellor of the Exchequer under what circumstances the cost of any rented property is permitted to be offset against taxation.

Mr. Maurice Macmillan

Rent, repairs and other maintenance expenses of business premises or sub-let property can be set off against the income from the business or the sub-letting.

Mr. Ashton

Can the hon. Gentleman tell us why big business should be allowed to offset rented property against their tax when council tenants and tenants of other rented property are not? Why is there this preference for businesses and not people?

Mr. Macmillan

It is not a question of big business at all. Any business can set off the repairs to the premises in which that business is carried against profits from that business. As far as I know the only other people who may set off rents against income are some M.P.s in some circumstances.

Mr. Skinner

On the basis of that last answer, would it be possible for the Treasury to introduce a Bill to allow council tenants to turn their properties into businesses?

Mr. Macmillan

If a person is carrying on a business from the premises rented to him by a local authority, whether he is allowed to carry on that business is a matter for the local authority and whether he can charge to tax any expenses which he may incur in the course of the business is a matter for the tax authorities, quite independent of who is his landlord.