HC Deb 30 June 1909 vol 7 cc380-1
Sir JOHN JARDINE

asked the Chancellor of the Exchequer whether the Finance Bill makes any specific provision for taxing the increment of amount or casualty on transfer by a vassal which the owner of a superiority in North Britain may presently levy from the new vassal over and above what the superior received on the occasion of any former transfer; and whether he proposes to make any exemption or reduction in favour of a vassal who may be called upon by the superior to pay by way of casualty or fine upon a transfer to a new vassal of the subject a year's rent thereon incremented by the buildings erected by and goodwill created by the vassal?

Mr. HOBHOUSE

The answer to the first part of my hon. Friend's question is in the negative. The Increment Tax in the Bill is leviable only on a transfer on sale of land, the grant of a lease, or on a death. My right hon. Friend does not propose, therefore, to make any exemption or reduction such as is suggested in the question.

Sir JOHN JARDINE

asked the Chancellor of the Exchequer, as to the incidence of Increment Tax and halfpenny Development Taxes under the Finance Bill on properties held by vassals in superiorities in North Britain, such as the Duke of Roxburgh's superiority over Kelso, whether the superior or the vassals will be held liable to the payment of the Development Tax; whether the superior will be entitled to any exemption or allowance if his vassal refuses to develop; and whether, when the vassal has developed his property by making a garden or building a shop or factory or establishing a good will, the superior will be entitled, on any occasion of casualty or relief, to levy from the vassal any increase of payment based on such improved value, and in what time and manner the superior receiving any such increase will be required to pay the Increment Tax?

Mr. HOBHOUSE

The taxes mentioned by my hon. Friend are, under the Finance Bill, payable by the vassal and not by the superior. The answer to the second part of my hon. Friend's question is in the negative. Although the superior may be entitled to levy an increased amount of casualty in consequence of development of his land made by the vassal, the superior will not be required to pay the Increment Tax.

Mr. YOUNGER

May I ask whether in that case the tax will not be paid twice over?

Mr. HOBHOUSE

No, I do not think so.