§ Mr. Joel Barnettasked the Chancellor of the Exchequer under what circumstances a limited company or its shareholders, when realising a gain on the sale of land or property which was acquired for the sole or main object of development or sale, can be taxed at a higher rate than any other profits made by that company, always excepting the sale of shares in such company where they are subject to tax under Section 488 of the Income and Corporation Taxes Act 1970.
§ Mr. NottThere are no circumstances in which a company is taxed at a higher rate on such a gain than on other taxable profits attributable to the same period. Where an individual shareholder is liable to surtax in respect of the gain, as may happen if it is distributed as a dividend 373W or if the company is a close company with a shortfall of distributions, the rate of tax depends on his total income.
§ Mr. Joel Barnettasked the Chancellor of the Exchequer if profit on the sale of land by a farmer, who had previously used the land for agricultural purposes, is subject only to capital gains tax.
§ Mr. NottThis would normally be the case unless the farmer had done anything to the land by way of development before he sold it.