§ Mr. CONDONasked the Secretary to the Treasury why a professional man is called on to pay Income Tax in January on the income for the year which only ends on 6th April; how is he to calculate his income in advance; whether landowners are only asked to pay Income Tax on the rents actually received by them; and whether the same rule is applicable to professional men?
§ Mr. HOBHOUSEThe annual profits accruing to persons from any profession, trade, etc., are assessable under Schedule D of the Income Tax Acts on the aevrage profits of the three preceding years, and the duty is by law payable on or before 1st January in the year of assessment, which begins on 6th April and ends on the following 5th April. As regards the third part of the question, lands in Great Britain are assessable on the rack rental value in accordance with the provisions of the Income Tax Acts, and, as a rule, the rack rental is represented by the rent payable. In Ireland, the assessment is based on the amount of the Poor Law valuation, but arrangements are made whereby, in the case of agricultural lands, the Income Tax (Schedule A) is accepted from landlords on the actual rents received.