asked the Chancellor of the Exchequer whether, with regard to reassessments under Schedule A, he will state how the rack rent is ascertained for the purpose of reassessment in cases where the hereditament was let on lease at a rack rent more than seven years ago; is he aware that assessments are being made in such cases in substantial excess of the rent the owner receives from the hereditament; and, having regard to the principles' that govern the 1293W assessment of property in the present quinquennial reassessment which he has recently made public, what action does he propose to take?
§ Sir W. JOYNSON-HICKS
The annual value of a hereditament let as stated by my hon. Friend requires to be estimated after a consideration of all the circumstances, and in particular by reference to the rents paid under recent agreements for any similar properties in the vicinity, as in the case of owner-occupier properties for which no rent is paid. The annual value so arrived at would often be in excess of the rent the owner actually receives, but I do not accept the suggestion in the third part of the question that this conflicts with the public announcement recently made. I would refer my hon. Friend to replies made to the hon. Member for the Bosworth Division of Leicester on 24th July, and to the hon. Member for Caerphilly on 26th July, which bear upon this matter. I am sending my hon. Friend a copy of those replies.