HC Deb 15 July 1909 vol 7 cc2423-4W

asked the Chancellor of the Exchequer whether persons who make a business of buying and selling land are at present charged for Income Tax under Schedule D at 9d. in the pound on the next result of these transactions, which is treated as earned income; and whether, under the Finance Bill of 1909, the same persons will be charged a tax of 4s. in the pound on those of their transactions which show a profit, on the assumption that those are unearned increment; and, if so, whether he will present to the House some typical cases showing how much income will be left to such persons?


The answer to the first part of the question is in the affirmative if the total income of the persons referred to does not exceed £2,000 per annum. As regards the second part of the question, liability to Increment Value Duty on land in any particular case will depend on the circumstances of that case, and has no analogy with the taxation of earned income derived from the business of dealing in land. I cannot undertake to construct "typical cases," but I may remind my hon. Friend that four-fifths of all increment value will still remain in the owner's hands.