§ Mr. WEDGWOOD
asked the Chancellor of the Exchequer, with reference to the recovery of building value which is to be allowed for in estimating whether Increment Duty is chargeable on the sale of house property, whether the price realised on the sale will be taken as evidence of such recovery of building value?
§ Mr. MASTERMAN
Price realised on sale is not by itself evidence of recovery of building value. The value of the property may, owing to various causes, have increased though the building on it may have become less suitable to the requirements of the district, and so have declined in value. On the other hand, where it is shown that a building at the time of a sale is more suitable to the requirements of the district than it was at the time of the original valuation, the price at the sale would be evidence of recovery of building value.