HC Deb 01 October 1909 vol 11 cc1611-3

No Reversion Duty under this Part of this Act shall be chargeable in respect of the period during which any land is held by a rating authority, or by any person, or body of persons, carrying on any undertaking or institution without any view to the payment of any dividend or profit out of the revenue thereof, for purposes which, in the opinion of the Commissioners, are public purposes or charitable purposes and is not so held at the determination of the lease of such land, and in such event the value of the benefit accruing to the lessor shall for the purposes of this part of this Act be deemed to be the amount (if any) by which the total value of the land at the time the lease determines exceeds the amount of the consideration paid to the rating authority or person or body aforesaid for their interest in the reversion.

The object of this Clause is to make the exemption from Reversion Duty for the benefit of local authorities and bodies constituted for charitable purposes real instead of illusory as it is at present. If a local authority sell a lease, as in most cases they are bound to do when they buy a lease under statutory powers for a certain period, they obviously will pay the duty unless the proportion of the duty which had really accrued during their holding of the lease is excluded from the payment at the time the lease falls in. If they sell the land, and this Clause is not carried, obviously the purchaser will discount the price at which he is willing to buy the land by the amount which he will be called upon to pay in the form of Reversion Duty at the end of the lease. I think if the Chancellor of the Exchequer really wishes to exempt local authorities from payment of Reversion Duty he should accept this Clause.

Mr. LLOYD-GEORGE

I really cannot accept this Amendment. We discussed the question very fully the other day, and I do not think I can depart from the position I took up then. I was not aware that it would be in order to move this Clause, for the exemption of land held for public or charitable purposes was dealt with in Clause 25.

The CHAIRMAN

In connection with a long Bill like this, it is sometimes difficult to remember whether individual questions which are raised in the form of Amendments have been already dealt with or not.

Mr. WALTER GUINNESS

I think part of the new Clause was discussed on Clause 25, namely, that part which refers to the exemption of bodies constituted for public or charitable purposes, but the grievance of the local authorities was not discussed at all.

The CHAIRMAN

Part of this has already been decided, and that ought not to be moved now. As I have put the new Clause to the Committee, however, perhaps the hon. Member will withdraw.

Mr. WALTER GUINNESS

I would ask the Chancellor of the Exchequer whether he cannot see his way to give the exemption to local authorities?

Mr. LLOYD-GEORGE

I will consider the point put by the hon. Member.

Mr. WALTER GUINNESS

I beg leave to withdraw the Clause.

Clause, by leave, withdrawn.

Sir E. CARSON had the following on the Notice Paper:—