§ 9. Mr. Whiteheadasked the Chancellor of the Exchequer if he will take steps to curb the abuse of tax relief for the purchase and construction of holiday villas outside the United Kingdom, details of which have been sent him by the hon. Member for Derby, North.
§ Mr. WhiteheadThe Minister has seen a copy of the letter which is being sent to my constituents in Derby by the firm of Slater Barwick. It is a blatant invitation to use public money granted in tax relief on mortgages or second mortgages for the purpose of constructing holiday villas abroad. What possible place is 902 there for parasitic firms of this kind in what is supposed to be a time of national crisis?
§ Mr. NottThe example sent to me by the hon. Member involved an individual extending his mortgage on the existing home. Interest on this mortgage would be allowable for tax and does not involve any abuse of the tax rules.