§ 48. Mr. Stokesasked the Chancellor of the Exchequer whether the profit made on the sale of derated agricultural land at a high price for war purposes is regarded as a revenue profit or a capital gain?
§ The Chancellor of the Exchequer (Sir Kingsley Wood)As I have already informed my hon. Friend, the broad distinction in such cases is between the carrying on of a trade or business and the realisation of capital assets. Each case would have to be determined according to the circumstances.
§ Mr. StokesCan the Chancellor explain why people who sell land of poor value at high prices get away with the huge profits that nobody else is allowed to make?
§ Sir K. WoodThis is a matter to be settled on the merits of each case, and so far as the general application is concerned, there is a number of legal cases.