§ Mr. CLOUGHasked the Chancellor of the Exchequer (1) whether, under the Budget proposals, a tenant of agricultural land rented at £3,000 a, year will be subjected to an Income Tax and Super-tax of 7s. 5d. in the £ on £6,000, or £2,237 10s. in the place of an Income Tax of Is. 2d. in the £ on £1,000, one-third of the rent, or £58 6s. 8d. before the War, thus showing that his Income Tax has been increased thirty-eight-fold; and (2) whether, under the Budget proposals, a tenant of agricultural land rented at £3,000 a year and returning his profits at £3,000 under Schedule D will be subjected to an Income Tax of 6s. 5d. in the £ on £3,000, or £962 10s., in the place of an Income Tax of Is 2d. in the £on 1298W £1,000, one-third of the rent, or £58 6s. 8d., before the War, thus showing that his Income Tax has been increased sixteen-fold?
§ Mr. BONAR LAWThe hon. Member's calculations are correct in both cases, assuming that in the first-mentioned case the actual profits are not less than £6,000.
§ Sir WILLIAM BULLasked the Chancellor of the Exchequer whether arrangements will be made for the deduction of Schedule A Income Tax from rent, seeing that it can only by law be deducted from the rent next falling due after payment of the tax, and that in future the tax will in most cases amount to more than one quarter's rent; and will it in future be legally deducted twice or four times a year?
§ Mr. BONAR LAWAs will be seen from paragraph (6) on page 8 of the Financial Statement which was issued on the 22nd instant, it is proposed to allow the. duty payable on property chargeable under Schedule A to be paid in two equal instalments. My hon. Friend will, I think, find that this arrangement will obviate the difficulty which ho has in mind.