§ So much of section sixty-four (Amendment of law as to redemption of land tax) of the Finance Act, 1921, as relates to the rate per centum per annum of the interest to be paid under section thirty-two of the Finance Act, 1896, on unpaid instalments of the capital sum due from the owner of any land to the Commissioners of Inland Revenue for the purpose of the redemption of land tax charged on that land shall from the commencement of this Act cease to have effect and as from such commencement the said rate shall be three per centum.—[Brigadier-General Clifton Brown.]
§ Brought up, and read the First time.
§ 4.53 p.m.
I beg to move, "That the Clause be read a Second time."
1569 Up to the Finance Act of 1921 the amount of interest on money borrowed to redeem land tax was 3 per cent. In the Finance Act, 1921, the interest was raised to 4 per cent., at which rate it stood in the Finance Act of 1896. This new Clause simply seeks to put the rate of interest back where it was in 1896. I need not enter into the question of land tax, but I would ask the Chancellor of the Exchequer to consider what he said last year to the hon. Member for Kettering (Mr. Eastwood) with regard to a scheme of redemption for the whole of the land tax, which is a very worrying business. It seems to us now that the Conversion Loans, etc., have been brought to a rate of interest from 5 per cent. to 3½ per cent., that loans in respect of money borrowed to redeem land tax should be reduced just as other loan rates have been reduced.
§ 4.54 p.m.
My hon. and gallant Friend in mentioning that the rate of interest was increased in 1921 from 3 per cent. to 4 per cent., omitted to observe that the consideration, which was then 30 years' purchase, was reduced to 25 years' purchase.
I do not observe that in his proposal to restore the rate of interest to 3 per cent. the hon. and gallant Member proposes to restore the number of years purchase from 25 years to 30 years. If he will consider the two things together I might meet him. Otherwise, this is not a matter for legislation. Inasmuch as the total amount paid in interest on instalments is only about £400 a year and the saving of interest would only be £100 a year, it does not seem worth while to bring forward such an Amendment.
§ Motion and Clause, by leave, withdrawn.