§ Mr. BENNETTasked the Chancellor of the Exchequer whether, in view of the fact that the cost of repairs has at least trebled in the last few years, it is intended still to limit the allowance deducted for repairs from Income Tax on cottage property to one-sixth of the gross rents, minus local rates?
Mr. CHAMBERLAINUnder the existing law, the allowance for repairs of house property is one-sixth of the annual value as adopted for the purposes of Income Tax under Schedule A, the allowance being normally made each year irrespective of whether there has in fact been an outlay on repairs or not. In addition, in the case of houses of an annual value not exceeding certain prescribed amounts (£70 for houses in the Metropolitan Police District, including the City of London, £60 for houses in Scotland and £52 for houses elsewhere) an owner who can show that on the avera-age of the preceding five years his expenditure on maintenance, repairs, insurance and management has exceeded the above-mentioned allowance of one-sixth may claim repayment of the Income Tax, Schedule A, upon the whole of such excess. The case of the cottage property to which my hon. Friend refers would appear, therefore, to be fully met.