HC Deb 14 January 1964 vol 687 cc5-6W
43. Mr. H. Hynd

asked the Chancellor of the Exchequer why Income Tax under Schedule A is still being charged on ground rent from house owners who are not owner-occupiers.

Mr. Green

Under the Finance Act, 1963, a tenant is still entitled to deduct tax from ground rent for the current year, 1963–64, and he has to pay over the corresponding amount of tax under Schedule A. The new system for taxing rents does not come into operation until next year, 1964–65.

47. Mr. Dudley Smith

asked the Chancellor of the Exchequer if he is aware that many householders who considered they would no longer be eligible for Schedule A tax on property have been taxed for the current financial year; and if he will introduce amending legislation to free all owner-occupiers from Schedule A considerations, irrespective of ground rent or leasehold commitments.

Mr. Green

No. My right hon. Friend pointed out in his Budget statement that Schedule A tax would be payable for 1963–64 on ground rents. The payer does not bear the tax in these cases but passes it on by deducting it from the ground rent. Next year there will be no Schedule A tax and ground rents will be payable in full.