HC Deb 18 March 1912 vol 35 c1660W

asked the Chancellor of the Exchequer how the allowance for the recovery of the value of the building is made in those cases where Increment Value Duty is not charged on house property sold at a price exceeding the total value as on 30th April, 1909?


The method prescribed by Section 2 of the Finance (1909–10) Act, 1910, for calculating the site value of land from the consideration on the occasion of a sale involves a deduction of an amount equal to the difference between the value of the laud with buildings and the value of the land divested of buildings. If therefore there has been a recovery of the value of the buildings since 30th April, 1909, the amount of this deduction ispro tanto increased. It follows that if the value of the site has not increased, and if the whole of the excess of the price over the original total value is represented by a recovery in the value of the buildings, the site value on the occasion will be identical with the original site value, and no duty will be chargeable.