PUBLIC BURDENS 167 



years there would be little or nothing to show 

 in the way of receipts. 'X' would have paid 

 Income Tax under Schedule A on the rental 

 value of his woodlands, and he would now come 

 forward and invoke the aid of Sub-clause 3 of 

 Clause 38 of the Finance Bill (the clause now 

 in question). 



" Suppose the net Schedule A assessment to 

 be £500 and the loss shown on the year's account 

 to be £300, the loss for Income Tax purposes 

 would be £800, and ' X ' would be repaid the 

 whole of Schedule A tax, which was on £500, 

 and the further tax on £300. That was to 

 say, he was repaid where he had no profit, 

 but loss. This process would go on until the 

 tide turned and profits began to be realised. 

 When profits did begin to be realised he would 

 be assessed on Schedule D on a three years' 

 average. In this way, for the whole period 

 from the first planting until the final cutting 

 ' X ' would have borne Income Tax upon the 

 actual profits from the woodlands, neither more 

 nor less." ^ 



The right to have newly planted or replanted 

 woods assessed under Schedule D as a separate 

 estate seems to be a real reUef to growers of 



^Journal of Forestry, October 1916, Vol. X., No. 4, p. 317. 



