HC Deb 27 March 1975 vol 889 cc203-4W
13. Mr. Kimball

asked the Chancellor of the Exchequer if he is aware of a difference in practice between the rating authorities and the Inland Revenue; and if he will instruct the Revenue that when the rating authority imposes domestic relief on a portion of business premises then the whole of the rate demand should be allowed as a business expense and not a portion as at present.

Dr. Gilbert:

I assume that the Member means "refuses" domestic relief rather than "imposes" domestic relief.

Questions on rating law are for my right hon. Friend the Secretary of State for the Environment, but I understand that the rule is that certain domestic rate relief is available only where more than half of a property is used for the purposes of a private dwelling. For tax purposes the proportion of the total rates allowable as a business expense is that which the part of the property used for business bears to the whole of the property—which may, of course, be more than or less than one-half. It would not be right to allow as a deductible business expense that part of the rate which was appropriate to the private part of the property.