§ 65. Mr. W. GRAHAMasked the Chancellor of the Exchequer whether his attention has been called to the fact that numerous Scottish landed estates have recently been formed into limited liability companies; whether this involves any change in the system of taxation of such estates; and, if so, whether there is gain or loss to the Exchequer?
§ Sir W. JOYNSON - HICKSI am aware that in certain instances the owners of landed estate; have transferred their properties to limited liability companies. In such a case the amount of the owner's liability to Super-tax may be affected, but in this connection I would invite the hon. Member's attention to the provisions of Section 21 of the Finance Act, 1922.
§ Mr. GRAHAMHas the Treasury made up its mind as to whether there will be a gain or a loss to the Exchequer by reason of this change?
§ Sir W. JOYNSON-HICKSNo, not yet. We have not had time enough yet to see what the effect of these limited liability companies will be.
§ Mr. MILLARDoes this practice meet with the approval of the Treasury?
§ Sir W. JOYNSON-HICKSAs the hon. and learned Member knows, the House passed a Clause in the Finance Act, 1922, to some extent dealing with this question, but, as I have said, we have not yet had sufficient experience to see what the effect of that Clause will be.