§ Mr. Biffenasked the Chancellor of the Exchequer whether under his regulations a trading company which pays Corporation Tax and betterment levy on profits realised on the disposal of property may make a deduction from the amount of levy; and whether the notes issued by the Land Commission indicating that this can be done in certain circumstances were issued with his approval.
§ Mr. Harold LeverSections 69 to 71 and the Eighth Schedule to the Land Commission Act 1967 allow an off-set in certain limited circumstances of Capital Gains Tax (or Corporation Tax on gains) charged in respect of a disposal of land, against betterment levy chargeable in respect of the same disposal. However, levy payable by persons dealing in land is allowable as a deduction in computing600W their profits for tax purposes and no offset of tax against the levy is therefore allowable. I am not aware of any statement to the contrary in official publications, but if the hon. Member will inform me which he has in mind I will have it examined.