Schedule 15 - Charge to income tax on benefits received by former owner of property
Finance Bill
4:45 pm
Mr Howard Flight (Shadow Chief Secretary To the Treasury, Economic Affairs; Arundel and South Downs, Conservative)
I am upset by the inconsiderate and authoritarian approach being taken by the Minister, which is untypical of her. These are not contrived arrangements. They are proper arrangements made by people who have sought not to avoid the benefits in kind arrangements. This is about people who have given the property and are paying a proper rent. However, whether a proper fair market rent is gross or established with a repairing lease, both situations are equivalent. Where a tenant has the cost of repairs on a repairing lease, the net rent is less. If there is a gross lease, the owner has the cost of repairs. It is a net-net similar situation, not a contrivance. In most cases, the typical arrangement is a tenant repairing lease. It is completely unreasonable not to deal with that situation.