§ 24. Mr. CASSELasked the Chancellor of the Exchequer whether a landlord who, at the expiration of a lease, grants his tenant a renewal at the same rent as the tenant paid previously, although the total value of the property has been increased by reason of improvements executed by the tenant during the lease, is subject to Reversion Duty at the rate of 10 per cent. on such increase in value; and whether, in view of the fact that this is likely to discourage landlords from granting renewals except at the full rack rent, he will consider the advisability of amending legislation?
§ The CHANCELLOR of the EXCHEQUER (Mr. Lloyd George)The answer to the first part of the question is in the affirmative. With regard to the second part, the number of cases in which landlords voluntarily relinquish the benefits accruing to them at the expiration of leases has in the past been small, 1472 and I do not think it will be difficult in the future for landlords to grant renewals on terms favourable to their tenants without themselves sacrificing more than they would have done previous to the passing of the Act imposing Reversion Duty.
§ Mr. CASSELDoes not the right hon. Gentleman think it a hardship on a landlord who wishes to permit a tenant who has executed improvements to remain on the land at the same rent as before should be thus fined for doing so?
§ Mr. LLOYD GEORGEThat is exactly the question I have answered.