HC Deb 08 April 1974 vol 872 cc73-4W
Mr. Rost

asked the Chancellor of the Exchequer whether he will extend his Budget proposals for the taxation of property and land development to include profits made from the reclamation of derelict land.

Mr. Hunt

asked the Chancellor of the Exchequer whether he will extend his proposals for the taxation of land and property development to include cases of land reclamation.

Dr Gilbert

Depending on the facts of the particular case, profits from the disposal of any reclaimed land may be chargeable under the existing law as income, either as profits of a trade or under the special provisions relating to transactions in land that were introduced in the Finance Act 1969—now contained in Section 488 of the Taxes Act. In so far as they are not so chargeable, the proposals originally announced on 17th December by the right hon. Member for Altrincham and Sale (Mr. Barber) for the taxation of development gains as income apply where such land is sold for redevelopment and the sale proceeds exceed certain limits.

Mr. Kenneth Clarke

asked the Chancellor of the Echequer whether he intends to make a distinction between profits on the reclamation and development of land and profits on the mere development of land in his forthcoming tax proposals.

Dr. Gilbert

No. I would refer the hon. Member to the reply to the Question in the name of the Member for Derbyshire, South-East (Mr. Rost).

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