§ Mr. NIELDasked the Chancellor of the Exchequer what deductions may be made in a return for Income Tax or Super-tax in respect of the sums which are required to be expended under covenants contained in the lease of property, the annual value of which is being accounted for, in respect of insurance of buildings, structural and decorative repairs, prescribed by the covenants, and other annual payments, e.g., annual maintenance of private road, the subject of a specific covenant, respectively?
§ Mr. BONAR LAWI would refer my hon. and learned Friend to Section 35 of the Finance Act, 1894, and Section 69 of the Finance (1909–10) Act, 1910, as amended by Section 8 of the Finance Act, 1914, which prescribe the allowances to be made for Income Tax and Super-tax purposes in respect of repairs, insurance, maintenance and management of property.
§ Mr. NIELDasked the Chancellor of the Exchequer whether he has considered the operation of Section 36 of the Finance Act, 1916, with reference to the non-allowance of deduction of premiums paid for life insurance in the computation for Super-tax, and the hardship which the refusal to allow such deduction involves to those incomes which are slightly over the limit upon which Super-tax begins to be payable, having regard to the present burden of taxation and high prices of living; and whether he will consider the desirability 1843W of amending the law so as to give relief up to a sum of £100 in respect of life insurance premiums?
§ Mr. BONAR LAWI would refer my hon. and learned Friend to Section 32 of the Finance Act, 1916, which makes special provision to obviate hardship in the case where a taxpayer's total income narrowly exceeds one or other of the limits of exemption, abatement, etc.
§ Commander BELLAIRSasked the hon. Member for Worcestershire (Bewdley Division) whether, in the case of married officers having a small business, the abatements, the premium on life policies, and allowance for children, may be allowed off the profits of the business instead of off the small Army pay; whether this was done at the beginning of the War; and, if so, whether the practice can be re-established?
§ Mr. BALDWINSpecial Income Tax relief applicable to the service pay of sailors and soldiers was granted for the first time by Section 25 of the Finance (No. 2) Act, 1915, and upon the principle which was determined when the differentiation of Income Tax rates was introduced—in 1907—it was expressly enacted that the allowances for abatement, insurance premiums, etc., should be made primarily from the Service pay. There has been no change in the practice since the introduction of the special relief for Service pay. Previously it was immaterial whether the allowances were made from Service pay or other earned income, as the Income Tax rates were the same for each. I may remind the hon. and gallant Member that this matter was fully discussed in connection with an Amendment moved by the hon. Member for Devizes to Clause 27 of the Finance (No. 2) Bill, 1916.
Mr. T. WILSONasked whether workmen are entitled to deduct from their income returned for Income Tax purposes the amount deducted from their wages under the provisions of Parts I. and II. of the National Insurance Act, 1911?
§ Mr. BONAR LAWThe provisions of the Income Tax Acts do not permit to any taxpayer a deduction in respect of pay-meats for benefits during sickness or un-employment, whether such payments take the form of premiums to insurance companies, etc., or contributions under the National Insurance Act, 1911.