§ I come now to a series of other measures which are designed to prevent individuals or groups from escaping taxation which the community as a whole undoubtedly believes should be paid. First, the taxation of land and property development, where, I think the whole House agrees, action is long overdue.
§ In the Gracious Speech it was said that proposals would be prepared for bringing into public ownership land required for development. Work on these proposals is pressing forward, but it will take some time to carry the necessary legislation through. In the meantime, I propose to continue with the proposal, announced on 17th December last, for charging as income certain capital gains arising from the disposal of land and building with development value or potential. It would not be right that disposals of land made since 17th December, which will have taken into account this proposal, should not bear the impact of the tax changes proposed.
§ The necessary legislation will be included in the Finance Bill. It will, I fear, be lengthy and complex—something that my predecessor will remember—but I hope that I can count on co-operation in its passage from all parties in the Opposition. In preparing our proposals for bringing development land into public ownership, we shall of course have 315 to consider their relationship with the tax system in general and with these last proposals in particular.
§ The proposals announced on 17th December had a second aspect, namely, that the first letting of a non-residential development should be treated as a disposal for the purposes of tax on capital gains. I propose also to implement this proposal, since it is already well prepared. I made it clear after the December proposals were announced that I did not regard them as adequately dealing with the gains made from property development. I have not changed my view, and will be considering in the coming year what further action is required.