Thus, when the Income Tax is at 1s., an income of £180 pays less than 1½d. in the £, an income of £300 pays less than 6d. an income of £500 pays less than 8½d., and an income of £700 pays less than 11d.
I now give an explanation of the various Schedules under which the tax is collected. The abatements, it should be understood, refer to all the Schedules.
Schedule A, sometimes called Property Tax or Landlords' Tax, is assessed upon the rents received by the owners of lands, houses, etc. It is directly assessed upon occupiers, who, if they are tenants, deduct the tax from their next payment of rent. Thus it is a Land and House Tax which the landowner or houseowner cannot possibly escape.
It should also be explained that the term "Lands," as used in connexion with Schedule A, refers to Agricultural lands, and the farm-houses and farm buildings, etc., thereon. The term "Houses" refers to houses, business premises, etc., together with the gardens, pleasure grounds or yards upon which they stand.
Owners of agricultural lands are allowed to deduct for repairs one-eighth of the rent. Owners of houses and other buildings are allowed to deduct for repairs one-sixth of the rent.
Schedule B covers profits from the occupation of lands, and taxes the incomes of farmers, nurserymen, and market gardeners.
Farmers' profits (unless farmers elect to be dealt with under Schedule D) are assumed to be one-third of the annual rent of their farms. Thus a farmer paying a rent of £480 or less is not subject to income tax, as one-third of £480 is £160, and incomes of £160 or less are not taxable. Nurserymen and market gardeners, however, are taxed on their profits in the same way as in the case of other business men.
The chief point to which I direct attention is that very few farmers pay income tax at all.