HC Deb 13 July 1909 vol 7 cc1859-60
Mr. HAROLD COX

asked the Chancellor of the Exchequer whether persons who make a business of buying and selling land are at present charged for Income Tax under Schedule D at 9d. in the pound on the net result of these transactions, which is treated as earned income; and whether, under the Finance Bill of 1909, the same persons will be charged a tax of 4s. in the pound on those of their transactions which show a profit, on the assumption that those are unearned increment; and, if so, whether he will present to the House some typical cases showing how much income will be left to such persons?

Mr. HOBHOUSE

The answer to the first part of the question is in the affirmative, if the total income of the persons referred to does not exceed £2,000 per annum. As regards the second part of the question, liability to Increment Value Duty on land in any particular case will depend on the circumstances of that case, and has no analogy with the taxation of earned income derived from the business of dealing in land. I cannot undertake to construct "typical cases," but I may remind my hon. Friend that four-fifths of all increment value will still remain in the owners' hands.

Mr. LANE-FOX

asked whether a lease of any separate part of a building will in any case constitute an interest in land; and, if so, whether Increment Duty will be payable upon the determination and renewal of such lease?

Mr. HOBHOUSE

It is not my right hon. Friend's intention that Increment Duty should be charged on the occasion of the determination and renewal of the lease of a flat, or separate offices, etc.

Mr. LANE - FOX (for Sir Henry Kimber)

asked whether, as it is not intended to treat offices, flats, and chambers on the upper floors of a building as an interest in the land, and that no distinction will be drawn between offices, etc., on the ground floor, and the other floors when let separately, it is to be assumed that the ground floor also is not to be treated as an interest in the land?

Mr. HOBHOUSE

The answer is in the affirmative.

Mr. JAMES HOPE

How would the Government propose to deal with the case of a Scotch tenement of which the upper floors were freehold?

Mr. HOBHOUSE

Perhaps the hon. Member will put that on the Paper.