Land Commission Bill (Levy)

Oral Answers to Questions — National Finance – in the House of Commons at 12:00 am on 29th November 1966.

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Photo of Mr John Boyd-Carpenter Mr John Boyd-Carpenter , Kingston upon Thames 12:00 am, 29th November 1966

asked the Chancellor of the Exchequer what are his estimates of the annual loss of revenue in respect of Income Tax, Surtax, Corporation Tax, Capital Gains Tax, and Stamp Duty, respectively, consequent upon the bringing into operation of the levy to be imposed under the Land Commission Bill.

Photo of Mr Niall MacDermot Mr Niall MacDermot , Derby North

I would refer the right hon. Member to the Answer given to him by my right hon. Friend the Minister of Land and Natural Resources on 13th June last. [Vol. 729, c. 1005.]

Photo of Mr John Boyd-Carpenter Mr John Boyd-Carpenter , Kingston upon Thames

As that Answer contained no information whatever, does it follow that the Government are imposing the elaborate apparatus for the collection of this levy without any evidence that they will collect any substantial amount of revenue net at all?

Photo of Mr Niall MacDermot Mr Niall MacDermot , Derby North

No, Sir; we will collect a substantial amount. The reason why the right hon. Gentleman cannot be given the figure for which he has asked was explained in the previous Answer. The fact is that Capital Gains Tax applies only to gains as from 5th April, 1965. It follows, therefore, that any loss of tax due to elimination of the development value will have very little effect in the initial years.