INCREMENT DUTY PAYABLE ON MINUS VALUES. [To THE EDITOR 07
THE "SPECTATOR.•]
SIR,—I should like to point out that the decision of the House of Lords in the case of the Inland Revenue Commissioners v. Herbert and Others greatly extends the power of the Chancellor of the Exchequer to levy increment duty on losses. In fact, to obtain that extended power appears to have been the sole object of the appeal. If the ease had been decided against the Commissioners it would have been difficult to levy increment duty in that and similar cases unless a profit had been realized. The figures were not disputed. It was admitted that the capitalized value of the feu duty, or ground rent, was £1,053, but that if the site were now bare it would only fetch £508. If the property should ever• partially recover• in value so that the site would he worth, say £1,008, or £45 less than its original value, Mr. Herbert, though still a loser, would have to pay 20 per cent. increment duty on £500, less 10 per cent., or £90.—I am, Sir,
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