§ Sir ROBERT HOBARTasked whether the right hon. Gentleman will state the full effect of the difference between the definition of agricultural land as defined in the Agricultural Rating Act and the definition of agricultural land given in Clause 27 of the Finance Bill; and what is the reason for this differentiation and its intention for the purposes of taxation?
§ Mr. LLOYD-GEORGEThe answer is long and complicated, and I propose to circulate it with the Votes.—[See, Written Answers this date.]
§ Mr. LANE-FOXasked on what basis the undeveloped supply of mineral waters will be estimated for the duty on undeveloped minerals under the Finance Bill?
§ Mr. LLOYD-GEORGEI can only refer the hon. Member to the answer given to him on my behalf by my right hon. Friend the Financial Secretary to the Treasury on the 28th ult., in reply to a similar question in regard to natural gas.
§ Mr. LANE-FOXMay I ask what sentence in the Finance Bill covers the difficulty?
§ Mr. LLOYD-GEORGEWhere it has a value it will be dealt with.
§ Mr. LANE-FOXThe question is how the value is to be arrived at. Does not 606 Clause 15 say: "The total value of minerals means the amount which the fee simple of the minerals, if sold in the open market by a willing seller in their then condition, might be expected to realise?"
§ Mr. LLOYD-GEORGEI think the right hon. Gentleman has supplied the answer himself.
§ Mr. LANE-FOXHow is the amount arrived at? That is a question which has not yet been answered
§ Mr. LLOYD-GEORGEIf it has got a market value it will be arrived at in the same way as the Death Duties are ascertained.
§ Mr. LANE-FOXMay I ask how the value of an undeveloped supply of natural gas or mineral water is to be arrived at, seeing that its conditions are totally different from the ordinary conditions of other minerals, the value of which can be arrived at by geological survey and investigation?
§ Mr. LLOYD-GEORGEI am afraid the hon. Member knows very well that there is a good deal of natural gas that has no market value at all. It depends on the condition of the market, and sometimes there is little demand and an infinite supply.
§ Mr. LANE-FOXI am not dealing with bottled natural gas on the benches behind the right hon. Gentleman, but the supply of natural gas in the earth, which will have to be valued for the purposes of the Finance Bill?
§ Mr. LLOYD-GEORGEIf it has a value of course it will have to be discovered in the ordinary way.
Mr. PIKE PEASEIn regard to the alternative system of a tax on royalties, would a tax be put on natural gas or mineral water?
§ Mr. LLOYD-GEORGEIf an alternative charge occurred on royalties the duty would be on the actual amount.