HC Deb 28 October 1909 vol 12 cc1174-5
Mr. NIELD

asked the Chancellor of the Exchequer whether the Increment Tax under Clause 25 of the Finance Bill will be levied upon the increased value above 10 per cent., after deducting not only expenses from advertising but also the following expenses necessarily incidental to the acquisition of the increased value by the the person taxed, namely, surveyors' charges, solicitors' costs, estate agents' fees, and any bonus that may have been payable; and, if so, whether he will state where this is secured in the Bill, or whether he will insert words which will secure it?

Mr. HOBHOUSE

Under Clause 25, Sub-section (4) (a), of the Finance Bill, deduction may be made from the total site value of any land of any part of that value which is proved to the Commissioners to be directly attributable to expenditure of a capital nature (including any expenses of advertisement) incurred bonâ fide for the purpose of improving the value of the land as building land. It is hardly possible to say without further particulars whether charges of the kind mentioned by the hon. Member (other than costs of advertisements, which are specifically provided for) would come within the scope of this provision, as this would depend on the circumstances in which and the purposes for which the expenditure was in each case incurred.

Mr. NIELD

Does the right hon. Gentleman mean that the cost of the original conveyance to the person charged with the Increment Duty shall not be deducted when a survey is necessary for this purpose?

Mr. HOBHOUSE

Not necessarily; it depends on the circumstances.