§ Mr. GERALD HURSTasked the Chancellor of the Exchequer whether he is aware that the assessments of property in Manchester for Income Tax purposes are far in excess of recent assessments of the same property by the local overseers, and in many cases are stated to be out of all proportion to the rack rents obtainable thereout; whether the Income Tax assessments in question have been made after personal inspection of the property; and if he can see his way to receive a representative deputation of Manchester citizens on this matter?
§ Major BOYD-CARPENTEROutside the metropolis, the rating valuation has never governed the Income Tax assessment, which is arrived at upon a different statutory basis, namely, the rent at which a property is let, or is worth to be let, by the year under an ordinary tenancy. This legal basis has, of course, been applied in Manchester, as elsewhere. I have had an inquiry made in this matter, and I fail to understand my hon. Friend's suggestion as to the great disparities between the Income Tax assessment and the local Manchester ratings. In the case of rack-rented properties, the assessment is on the rent. In other classes of case the new Income Tax figure is, I understand, frequently lower than the corresponding rating figure, and I think my hon. Friend's informant must have fallen into the error of comparing the gross Income Tax assessment with the rateable value, which is a net figure, after deduction for repairs, etc.
§ Mr. A. T. DAVIESasked the Chancellor of the Exchequer whether the 40 per cent. increase allowed under the Rent Restriction Acts is being taken as a basis of increased assessments under Schedule A (Income Tax); and whether, seeing that 25 per cent. of that increase allowed was for repairs, and that small property is being made liable for Inhabited House Duty because of the increase in the assessments, the matter will be reconsidered?
§ Major BOYD-CARPENTERI have explained the basis of the re-assessment now being made for Income Tax purposes in replies which I have recently given to a number of questions on this subject. In particular, I would refer to the reply given on the 3rd May to a question standing in the name of the hon. Member 2753W for East Surrey; I am sending my hon. Friend a copy of that reply. The Income Tax Acts give the owner of property complete rights of claiming allowance in respect of his expenditure on repairs and maintenance. As my hon. Friend in dicates, the new assessments will be used for the purpose of Inhabited House Duty and, in so far as they may be increased, will involve a certain increase in the charge of that duty in individual cases. The Inhabited House Duty remains, however, at the old pre-War rates, and is a very light duty, and the amount of any increases in individual cases will be relatively very small.
§ Mr. COLLISONasked the Chancellor of the Exchequer whether His Majesty's inspectors of taxes have received any special instructions since 1st April, 1922, with reference to the forthcoming revaluation of properties under Schedule A of the Income Tax; and, if so, what were the terms of such instructions, and Whether they were issued by the Treasury officials or from Somerset House?
§ Major BOYD-CARPENTERThe Commissioners of Inland Revenue, in the exercise of their statutory duties in relation to all the taxes placed under their care and management, have frequent occasion to give instructions and advice to their inspectors and other officers. These communications are conveyed sometimes orally and sometimes in writing. I am not prepared to authorise the publication of internal communications of this character.
§ Sir WALTER de FRECEasked the Chancellor of the Exchequer Whether he has, under the reassessment of property under Schedule A, considered the case of those owners of single houses who bought for personal use but cannot owing to the Rent Restrictions Act secure occupation; whether he is aware that the fictitious prices which they paid will now be made still more onerous by the new re-assessment for Income Tax purposes; and whether he can in such cases treat the owners with special consideration?
§ Major BOYD-CARPENTERThe legal basis of assessment of the annual value of property for Income Tax purposes is, broadly speaking, the rent at which a property is let, or is worth to be let, by the year under an ordinary tenancy. I do not think that there is any sufficient ground for an alteration of the law in2754W favour of the particular cases to my hon. Friend refers.
§ Captain TERRELLasked the Chancellor of the Exchequer whether he is aware that notices of reassessment often only reach the persons concerned several days after the date of issue, thus depriving the recipients of the full period in which they have the right of appeal; and whether he will give instructions that such delays shall not be the result of any action on the part of the officials of his Department?
§ Major BOYD-CARPENTERMy hon. and gallant Friend may rest assured that in any case where for any reason there has been delay in the delivery of the notice of assessment to the person concerned the Inland Revenue authorities will not object to an appeal on the ground that notice of appeal was not given within the time limited therefor.
§ Captain TERRELLasked the Chancellor of the Exchequer whether he is aware that reassessment under Schedule A will in many cases be so increased that the whole of the reduction of Income Tax will be taken back again; that the clergy especially will be sufferers, as many of them are compelled to occupy large vicarages, the assessment upon which will be largely increased; and whether the whole question of reassessment will be reconsidered?
§ Major BOYD-CARPENTERAs I have already explained, the basis of assessment of the annual value of property for Income Tax purposes is the rent at which a property is let, or is worth to be let, by the year under an ordinary tenancy. This legal basis has, of course, been applied to vicarages, but I am not aware of any such cases in which largely increased assessments have resulted, and I know that the authorities are alive to the special circumstances of this class of property. If my hon. Friend has in mind any case of this character in which the new assessment is deemed to be excessive, and will send me the necessary particulars, the Board of Inland Revenue will very gladly have the matter looked into.