HC Deb 17 May 1911 vol 25 cc2003-4
Mr. ROYDS

asked (1) what method is adopted by the Commissioners of Inland Revenue to arrive at the amount of the deductions directed to be made under Section 2 (2) of the Finance (1909–10) Act, 1910, and particularly what method is adopted to arrive at the gross value of property on the occasion of a sale; (2) whether on the assessment of Increment Value Duty on the occasion of sales of land new official valuations of the property included in each sale will be made by the Commissioners of Inland Revenue; and, if so, under what authority?

Mr. LLOYD GEORGE

The deductions directed to be made on the occasion of a sale under Section 2 (2) of the Finance (1909–10) Act, 1910, are those specified in Section 25 (4) of the Act and are to be calculated by reference to the circumstances existing at the time of the sale. The first of these deductions is "the same amount as is to be deducted for the purpose of arriving at full site value from gross value." This necessitates a fresh computation of the gross value and full site value at the time of the sale; the gross value will be computed in the manner prescribed by Section 25 (1) of the Act.

Mr. ROYDS

asked whether the Chancellor of the Exchequer is aware that in. many districts—Lincolnshire, for example—dykes and stone walls represent a greater outlay than live fences, and that, while a deduction must be made to ascertain site values under the Finance (1909–10) Act, 1910, in respect of live fences, no such deduction can be made in respect of the more expensive dykes and stone walls; whether he will state the grounds for this distinction; and whether he intends to propose any alteration of the law?

Mr. LLOYD GEORGE

The answer to the first part of the hon. Member's question is in the affirmative: the effect of the suggested allowance would be to lower the datum line from which Increment Value Duty is calculated, and consequently to increase the amount of duty payable when the building value of the land overtakes its agricultural value; consequently I do not propose to introduce any amendment of the law.