§ Mr. SWANasked the Chancellor of the Exchequer whether he is aware that owners of buildings, by accepting lower rents than the market value and charging premiums on leases, are able to pass on to their tenants a part of the Income Tax which would otherwise be payable by them, inasmuch as a tenant cannot deduct more than the Income Tax on the actual rent; whether he is aware that the owners also escape part of the liability to Super-tax by the same method; and what steps he proposes either to make premiums on leases subject to Income Tax or to enable the tenants in such cases to recover the whole of the Income Tax from the owners?
Mr. CHAMBERLAINThe incidence of the Income Tax is based on the full annual value of the property. This is known to the parties concerned at the time the bargain is made, and is reflected in the amount of the premium. It is not my intention to propose any alteration of the law in the direction suggested by the hon. Member.