HC Deb 07 March 1972 vol 832 cc1228-9
24. Mr. Dixon

asked the Chancellor of the Exchequer whether he will allow as a deduction from gross income the charges on a hire-purchase contract to finance the purchase of a caravan home, in the same way that he allows a deduction of interest on a loan taken out for the same purpose.

Mr. Maurice Macmillan

I have noted my hon. Friend's suggestion.

Mr. Dixon

In practice, bank loans are available only to those who live in houses, and people who live in caravan homes can borrow money only on hire purchase. Therefore, as it now stands, there is one law for the rich and one for the poor.

Mr. Macmillan

It is open to those purchasing caravan homes to do so by means of a credit sale agreement as opposed to a hire-purchase agreement, and therefore to attract tax relief. I have noted my hon. Friend's suggestion, but I cannot go further until my right hon. Friend's forthcoming Budget Statement.

Dr. Gilbert

Would it not be a step in the right direction if the Government were to consider implementing those provisions of the Crowther Report that would require the public to know the true rate of interest that they are being charged in all these transactions?

Mr. Macmillan

These matters are being considered by the Government, but they would not affect the issue of hire-purchase interest.