HC Deb 23 April 1914 vol 61 cc1119-20W

asked the Chancellor of the Exchequer if he is aware that the practice of allowing no more than one-third of the rent of a house which is used partly for business purposes as a charge against profits under Schedule D for the purposes of Income Tax causes dissatisfaction and operates with special harshness in the case of hotels, boarding-houses, schools, nursing homes, and similar premises where the buildings are extensive and the accommodation of the tenant or proprietor himself often extremely small, and that under this practice cases occur where, although there is an actual loss in trading, a considerable profit for Income Tax purposes is deemed to have been made; and whether, in his forth coming Budget, or in an alteration of the existing practice of the Inland Revenue Commissioners, he will take steps to cure this state of affairs?


The allowance referred to is governed by Section 101 of the Income Tax Act, 1842, and is limited to such sum not exceeding two-thirds of the rent of the premises in question as the District Commissioners may allow, and not one-third as stated in the question. I understand that the allowance is, as a rule, adequate, but I shall be pleased to bring the matter to the notice of my right hon. Friend.