HC Deb 02 July 1954 vol 529 cc133-4W
Sir J. Lucas

asked the Financial Secretary to the Treasury whether he will make a statement on the present practice of the Inland Revenue with regard to the person assessable under Schedule A in cases where flats are let over long periods at a rent less than the annual value on payment of a premium.

Mr. Boyd-Carpenter

The Inland Revenue have been advised that in cases such as that to which my bon. Friend refers the Schedule A assessment should be on the occupier by virtue of the provisions of Sections 105 and 113 of the Income Tax Act, 1952, and that is the basis of the present Departmental practice. The legal position is not free from doubt, and from some text books the view might be formed that the assessment would be on the landlord. It is likely that the matter will be tested in the courts fairly soon. I should add that this answer does not affect the ordinary case where all the flats in a building are let at full rents, with no premium, where the landlord is assessable under Section 109 of the Income Tax Act. 1952.

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