§ (1) On each occasion on which Increment Value Duty is collected on the increment value of any land such an amount of duty shall be deemed to be due as the Commissioners determine, after giving credit for the amount of duty paid on previous occasions.
§ (2) Where Increment Value Duty is collected on the occasion of the transfer or passing on death of the fee simple in possession of any land, or on any periodical occasion in the case of land held in fee simple in possession by a body corporate or unincorporate, the whole amount of the duty which is determined to be due shall be collected by the Commissioners in accordance with rules made by them for the purpose.
§ (3) Where Increment Value Duty is collected on the occasion of the grant of a lease, or on the transfer or passing on death of any interest in land, or on any periodical occasion in the case of an interest in land held by a body corporate or unincorporate, such proportionate part of the duty shall be collected as may be determined by the Commissioners to be payable in respect of the interest in land created, transferred, passing on death, or held, in accordance with rules made by them for the purpose.
§ (4) For the purpose of the collection of duty on the increment value of any land under this Section, the increment value shall be deemed to be reduced on the first occasion on which Increment Value Duty becomes due under this Act by an amount equal to ten per cent. of the original site value of the land, and on any subsequent occasion by an amount equal to 10 per cent. of the site value on the last preceding occasion on which Increment Value Duty has become due, and the amount of duty to be collected shall be remitted in whole or in part accordingly.
§ Any duty which by reason of this provision is remitted on any occasion shall not be collected and shall be deemed to have been paid.
§ Provided that no remission shall be given under this provision on any occasion 258 which will make the amount of the increment value on which duty has been remitted during the preceding period of five years exceed twenty-five per cent. of the site value of the land on the last occasion on which increment value became due prior to the commencement of that period or of the original site value if there has then been no such occasion.
§ (5) Increment Value Duty shall be a Stamp Duty collected and recovered in accordance with the provisions of this Act.
§ Drafting Amendments made.
§ Amendment made: To insert at the end of Sub-section (1) the words: "The Commissioners shall make such apportionments and re-apportionments of any duty paid on previous occasions as they think necessary for the purpose of giving effect to this provision."—[Sir W. Robson.]
§ Lord WILLOUGHBY de ERESBY
moved to insert, at the end of Sub-section (2) the words, "Provided that where Increment Value Duty becomes due on the occasion of any grant of a lease of the land, the duty shall, if the person or persons chargeable so desire, be collected by fifteen equal instalments payable annually."
§ The land which is to be built upon in many parts of England and Scotland is not sold, but leased. I have always thought myself, if there is any justification at all for Increment Duty, it is in the case of these windfalls of which we hear so much when a man sells his land and gets his money into his hands. In cases where he does not sell the land, but simply leases it, and does not get a capital sum of money paid down, he should be allowed to pay by yearly instalments. If an Amendment similar to this is not accepted the result may be to stop the leasing of land for building purposes. I hope the Attorney-General may see his way to accept this Amendment. I do not suppose it would cost the Government any money; they would not lose by it in the long run, and it would be a great convenience to people, many of whom may only derive a very small increase on their yearly income by letting on lease.
§ Sir W. ROBSON
I think the Noble Lord's Amendment would have a limiting effect. Under Clause 4, Sub-section 5, ample power is given to the Commissioners to make regulations with respect to the 259 payment by instalments, and they are not limited to 15 instalments. The Subsection says that regulations may be made for the payment of any Increment Value Duty by instalments in the case of any lease or transfer on sale where the consideration is in the form of a periodical payment, so they may make regulations for the payment of the whole Increment Value Duty by instalments.
§ Amendment, by leave, withdrawn.
§ "Where on the occasion of the death of any person the property passing on the death comprises settled land in which the deceased or any other person had an interest ceasing on the death of the deceased, then
- (a) if the subject of the settlement at the time of the death is the fee simple of the land, Increment Value Duty shall be collected as if the fee simple of the land passed; and
- (b) if the subject of the settlement at the time of the death is any other interest in the land, Increment Value Duty shall be collected as if that interest passed:
§ This is a formal Amendment intended to deal with a difficulty which frequently arises under the Finance Act of 1894. Under that Act a partial interest or limited interest in land, for instance, a life tenant who succeeded to the land as a holder, although he might have succeeded to a life tenancy nevertheless paid duty on the whole fee simple. This Amendment makes clear that which perhaps the Finance Act of 1894 did not make clear. That Act used the expression "passing on death." This Amendment explains that expression and interprets it in the way in which it should be interpreted.
§ Drafting Amendments made.