HC Deb 24 July 1912 vol 41 c1160

asked the Secretary to the Treasury whether it is under instructions given by the Government that the Inland Revenue officers, when landowners claim that in cases in which ground rent is received such rent shall be the basis in fixing land value, undertake that if ground rents are sold without profit Increment Tax will not be claimed on the difference between the valuation and the sale price; and if any obstacles are placed in the way of landowners taking advantage of the substituted value Clause of the Finance Act?


The consideration for the sale of a reversionary interest, together with the ground rent incident thereto, is not in most cases the site value of the land on the occasion of the sale as defined in Section 2 of the Finance (1909–10) Act, 1910, and accordingly the difference between that consideration and the original site value is not the proper basis for the assessment of Increment Value Duty. The answer to the second part of the question is in the negative.