§ 26. Mr. OUTHWAITEasked on what grounds houses are made subject to Increment Duty and not other products the value of which may fortuitously rise between one date and another?
§ Mr. MASTERMANMy hon. Friend's question is based on an incorrect assumption, the value attributable to buildings being wholly eliminated in arriving at the 2190 increment value on which duty is chargeable.
§ Mr. OUTHWAITEDoes the right hon. Gentleman realise that he has not answered my question. A tax which does not fall upon land value must fall upon something. It would not exist unless the house had been built. I want to know why the house has been singled out for this tax?
§ Mr. MASTERMANI cannot now enter into any argument on this point, but I certainly dispute the assumption contained in the hon. Member's supplementary question.
§ Mr. WEDGWOODWhy not, drop the tax now that you have got the valuation?
§ Mr. OUTHWAITEWould the tax have been levied if the house had not been built on that site?
§ Mr. MASTERMANCertainly. An Increment Tax may be levied on the value of land on which no house had been built at all.
§ Mr. OUTHWAITEBut in this case there has been no increase in the value of the land.
§ Mr. MASTERMANI do not know the case to which the hon. Member is referring.