HC Deb 09 September 1941 vol 374 cc31-2
53. Mr. Stokes

asked the Chancellor of the Exchequer whether individuals as well as companies are required to pay Excess Profits Tax on the selling or leasing of land?

Sir K. Wood

The Excess Profits Tax is applicable in any case where the selling or leasing of land constitutes a trade or business. Individuals are not, however, within the application of the special provision contained in Sub-section (4) of Section 12 of the Finance (No. 2) Act, 1939, which provides that, where the function or main function of an incorporated company or society is to hold property, the holding of property is in itself to be deemed to be a business.

Mr. Stokes

Does the Chancellor re member that on 5th August he told me that the Excess Profits Tax existed for taking excess profits arising from a trade or business? Will he tell the House what the trade or business of a landlord is?

Sir K. Wood

I shall have to consider that point carefully.

Mr. Woodburn

Is the Chancellor considering, in this connection, any increment tax that will bring to the State much of the profit that will take place in the reselling of land and property?

Sir K. Wood

I am sure that the hon. Gentleman would not wish me to anticipate my next Budget.