Skip to main content

Development Land Tax

Volume 978: debated on Monday 11 February 1980

The text on this page has been created from Hansard archive content, it may contain typographical errors.

asked the Chancellor of the Exchequer what was the amount of development land tax assessed as payable in 1979; and what was the amount assessed to be liable following deemed disposal.

[pursuant to his reply, 7 February 1980]: The amount of tax assessed in 1979—including that under the net of tax arrangements—was £58 million. Not all of this was immediately payable and the amount so payable could only be provided at disproportionate cost. Some assessments will ultimately be altered or discharged. It is estimated that about one quarter of the tax assessed in 1979 resulted from deemed disposals.

asked the Chancellor of the Exchequer how much of the development land tax revenue collected in 1979 following deemed disposal involved residential development.

[pursuant to his reply, 7 February 1980]: I regret that this information could be provided only at disproportionate cost.

asked the Chancellor of the Exchequer what was the average time taken by the Development Land Tax Office to deal with applications for certificates of satisfaction under section 18 of the Development Land Tax Act.

[pursuant to his reply, 7 February 1980]: Seven weeks for notifications under section 18 given in the 14-week period ending 4 January 1980.

asked the Chancellor of the Exchequer what is the number of forms prescribed under the schedules within the Development Land Tax Act for use by the Development Land Tax Office.

[pursuant to his reply, 7 February 1980]: The total number prescribed under the sections and schedules of the Development Land Tax Act and the provisions of the Taxes Management Act 1970 adopted for the purposes of Development Land Tax is 27.

asked the Chancellor of the Exchequer what are the procedures for resolving a difference of opinion between a district valuer and a builder about market value following a deemed disposal under the Development Land Tax Act; and if he will publish the set of instructions given to district valuers by the Development Land Tax Office for dealing with such cases.

[pursuant to his reply, 7 February 1980]: If, in an appeal against an assessment to development land tax, the question in dispute is one of the value of an interest in land, the issue is determined by the Lands Tribunal, the Lands Tribunal for Scotland or the Lands Tribunal for Northern Ireland as appropriate. On the second part of the question, the determination of the market value of an interest in land is for the district valuer, not the Development Land Tax Office.

asked the Chancellor of the Exchequer what procedures are available to the Development Land Tax Office to amend a valuation made by a district valuer following a deemed disposal under the Development Land Tax Act in the event of a district valuer having failed to take into acount all the factors that have determined the price of an open market transaction when arriving at the market value on a deemed disposal.

[pursuant to his reply, 7 February 1980]: There is no formal procedure. If, exceptionally, the Development Land Tax Office has evidence that leads it to believe that in arriving at his valuation, the district valuer may not have taken all relevant factors into account, it takes the matter up with the valuation office.

asked the Chancellor of the Exchequer when he will be in a position to announce the amendments to the Development Land Tax Act which he intends to introduce following his review of the Act; and if he will issue a consultation paper soon.

[pursuant to his reply, 7 February 1980]: My right hon. and learned Friend the Chancellor of the Exchequer will announce whether he proposes any further changes in Development Land Tax when he makes his Budget Statement.

asked the Chancellor of the Exchequer when he will be in a position to announce amendments to the Development Land Tax Act that will make a clear distinction for taxation purposes between windfall gains and gains made in the normal course of development by house builders and others holding land as stock-in-trade.

[pursuant to his reply, 7 February 1980]: My right hon. and learned Friend the Chancellor of the Exchequer believes that development value realised from the development of land held as stock-in-trade should be subject to development land tax in the normal way.

asked the Chancellor of the Exchequer what amendments to the Development Land Tax Act will be required as a consequence of the repeal of the Community Land Act 1975 as and when the Local Government, Planning and Land (No. 2) Bill is enacted.

[pursuant to his reply, 7 February 1980]: In consequence of the repeal of the community land scheme, the arrangements under which local authorities and certain other public bodies acquire land net of the vendor's development land tax are to be ended.

asked the Chancellor of the Exchequer what effect the calculation of gains on a deemed disposal under the Development Land Tax Act has on the expansion of domestic credit.

[pursuant to his reply, 7 February 1980]: The payment of development land tax would tend to reduce domestic credit, although the net effect might be somewhat less than the payment to the extent the taxpayer in part financed it by borrowing from banks or reducing his holdings of public sector debt. The administrative costs of calculating the gains on a deemed disposal, and thus the effect of the calculation on domestic credit, are negligible. To the extent the taxpayer subsequently arranges his affairs in the light of a prospective liability there might be some impact on domestic credit, but this could be either way.