§ The Government have also decided to make certain changes in the incidence of the betterment levy. These will help, in particular, the small owner, in many cases completely exempting him from the levy. The changes will, however, leave unaffected the main principle of the levy—that a substantial part of the development value created by the community should be returned to the community. That principle we reaffirm.
§ I shall not attempt to give more than the broad outline of the changes, but full details will be given in a White Paper to be laid later this afternoon by my right hon. Friends the Minister for Planning and Land and the Secretary of State for Scotland.
§ The main changes will be as follows. Subject to certain safeguards against avoidance, there will be an exemption from levy in cases where the market value of the land does not exceed £1,500. This will provide complete exemption from levy in about half of all cases at present giving rise to liability under the Act. These cases account for about one-tenth only of total levy. The Capital Gains Tax law will be amended to bring the full disposal proceeds into account. But as an owner-occupier's principal residence is exempt from Capital Gains Tax, the effect will be to remove many small cases from charge altogether. Provision will also be made to deal with possible hardship arising from charging levy on full development value on a single plot of land which has been received as a gift and on which the recipient is building a house for his own occupation. Third, some relief, though not exemption, will be given to owner-occupiers selling small and medium-sized properties. Fourth, appropriate professional fees incurred in 1016 the disposal of land will be allowed as a deduction in assessing a liability to levy.
§ These changes will cost the revenue £1½ million in 1969–70 and £3½ million in a full year.
§ Mr. Peter Emery (Honiton)rose—
Mr. JenkinsI have a great deal of ground to cover. I ask the hon. Gentleman to wait for the White Paper which will be available later this afternoon.