§ 32. Mr. LANE-FOXasked the Secretary to the Treasury if he will state what are the instructions given to Government valuers valuing land under the Finance (1909–10) Act, 1910, in the case of land sold 403 since the passing of the Act, at a loss to the seller on his previous transaction, but above the actual market value; and will such seller, in addition to the loss which he has made on the sale, be taxed on the increment which the valuation will show on the occasion?
§ Mr. MASTERMANNo special instructions have been issued to the Government valuers valuing land under the Finance (1909–10) Act, 1910, with reference to such cases as those to which the hon. Member refers. Assuming that, if the previous transaction was prior to the Act, the owner took advantage of the provisions of its Section 2 (3), no Increment Value Duty would be payable, unless the excess of the price which the seller receives above the market value is greater than the amount by which the value of the site has depreciated during his ownership.
§ Mr. LANE-FOXIs the right hon. Gentleman aware that in this case the seller whom I have in my mind may lose £100, and may still be taxed on an income of something like £300?
§ Mr. MASTERMANI said that did not seem to be the case. It may be a special case, and if the hon. Gentleman will give me the figures I will make inquiry into it.
§ Mr. LANE-FOXIs it not the case; not only in this as a special matter, but may it not easily arise in a great many cases?
§ Mr. MASTERMANNot, as I have said; only if the owner has not taken advantage of the provisions of Section 2, Sub-section (3).