To ask Mr. Chancellor of the Exchequer whether earned income includes the duty assessed under Schedule A on a rectory or vicarage occupied by a clergyman of the Church of England, on teachers' houses occupied by teachers, and on houses occupied by persons in a similar situation, when such occupation is part of the emoluments of their office and which they cannot let without the consent of a superior.
( Answered by Mr. Asquith.) The Answer to the Question will depend in each case upon whether the annual value of the house forms part of the income, for Income Tax purposes, of the person to whom the use of it is granted. Where such is the case, the tax under Schedule A will be at the 9 d. rate, as the house is "property which is attached to or forms part of the emoluments of an office or employment of profit"; where, on the other hand, an employee is required to reside in a particular house as part of the duties of his office and for the purposes of that office, the value of such house has been held by the courts (Tennant v. Smith) not to form part of the income of the employee, for Income Tax purposes; and, in such cases, the Schedule A tax will be chargeable at the 1s. rate.