§ Mr. SANDERSasked the Chancellor of the Exchequer whether his attention has been called to a letter addressed to the Inland Revenue Commissioners by the county treasurer of Somerset, and dated 19th June last, on the subject of Income Tax on land acquired for small holdings; and when a reply to the letter may be expected?
§ Mr. LLOYD GEORGEThe subject of the letter referred to, which affects other counties as well as Somerset, has necessitated extensive inquiry. A letter has-now been addressed to the Somerset county council treasurer on lines of which he had already been orally informed.
§ Mr. SANDERSasked the Chancellor of the Exchequer whether, when a county council hires land for the purpose of small holdings and lets it to applicants at an increased rent, the increase being due to-charges for management and other expenses, Income Tax is charged to the council on the the whole of such increased rent; whether the council is allowed to-deduct from the rent paid to their landlord the whole amount of tax so paid, provided it does not amount to more than 1s. 2d. in the pound on the rent payable for the year?
§ Mr. LLOYD GEORGEAs regards the first part of the question, it is understood 1747W that the General Commissioners are in practice assessing the whole rent paid to the county council in the circumstances set forth in the question. As regards the second part, the amount of tax which the council is allowed to deduct from the rent paid to the landlord is a matter between the council and the landlord; but, in the event of any difference arising between them on the subject, the Commissioners for General Purposes in the district are required by Section 160 of the Income Tax Act, 1842, to adjudicate in the matter.