§ Mr. Mike Thomasasked the Chancellor of the Exchequer what representations he has received about the consequences the proposed development land tax will have for the work of charities; and whether he will make a statement.
§ Mr. DellI have received many representations that to subject charities to the proposed new tax would seriously affect their work in the community, and as hon. Members will know my right hon. Friend the Prime Minister, together with my right hon. Friend the Minister for Planning and Local Government and myself met a delegation of church leaders on 23rd April.
I have, in consultation with my colleagues, carefully considered all these representations and have come to the conclusion that it would be right to allow charities a relief from DLT, in addition to that which has already been announced. As my right hon. Friend the Minister for Planning and Local Government announced today I now propose that a charity shall not be liable to DLT on disposing of any interest in land which was held by it on 12th September 1974, the date of publication of the White Paper, "Land" (Cmnd. 5730). Disposals of interests in land acquired after 12th September 1974 will be liable to DLT.
As already announced, a charity will not be liable to DLT on developing land for its own use. This exemption for development for a charity's own use will apply whether the interest in land was 404W acquired before or after 12th September 1974. A charity will, however, be liable to DLT on disposing of land so developed —for example, by sale—if the interest in land was acquired after 12th September 1974.