§ Mr. HART-DAVIESasked the Chancellor of the Exchequer whether the rental value of a house (less certain deductions) which is being purchased under the rent-purchase system is added to the purchaser's income as a source of income for the purposes of Income Tax; if so, on what principle is this rental value regarded as a source of income rather than an item of expenditure; and whether he will take into consideration the advisability of doing away with this penalisation of thrift?
§ Mr. LLOYD-GEORGEThe answer to the first part of the question is in the affirmative. As regards the second part, the purchase of a house is an investment of capital, and can scarcely be considered as an expense incurred in earning the income charged. I am unable to accept the suggestion contained in the third part of the question.