HC Deb 11 February 1913 vol 48 c703
36. Sir W. BYLES

asked if an owner who had accepted an under-valuation of his house, in the belief that Increment Value Duty would fall only on an increased value of the site, would be subject to the duty in case he sold the house at its true value, but at a price greatly in excess of the official valuation?

Mr. MASTERMAN

In the case of a property being sold at its true value, Increment Value Duty would only be charged on an increased value of the site.

Mr. G. FABER

Is true value what would be fetched at a public or private sale or what an official valuer says?

Mr. MASTERMAN

True value is what is agreed on between the owner of the house and the valuation official.

Mr. G. FABER

Would the right hon. Gentleman answer the question: Is the true value of the house what it fetches at a public or private sale or what an official valuer would value it at?

Mr. MASTERMAN

The official value, when a valuation is put down and the owner exercises his right of appeal, which afterwards is decided by a Referee, will be the true value of the house.

Sir G. YOUNGER

Is true value in question at all, or has true value nothing to do with valuation nowadays?

Mr. MASTERMAN

I do not understand that question. The value has to be found every day for various purposes. It is found, for example, under the Death Duties Act.

Sir G. YOUNGER

True value for the purpose of Increment Tax is not true value, but Budget value.

Mr. MASTERMAN

True value for the purposes of Increment Tax is true value for every other question for which true value is arrived at.

Mr. OUTHWAITE

Is it price that determines the value of the house?

Mr. MASTERMAN

Price is one thing. It máy be the same as true value or it may be different.