THE LAND-TAX MUDDLE.
[To THE EDITOR 07 THE " SPECTATOR"] SIR,—Acquaintance with actual conditions seems to show the impossibility in very many cases of getting a fair and antis- factory basis for the amount of site value and of any incre- ment thereon. Twenty years ago a relative of mine bought a piece of land for £200, upon which he built three houses at a cost of £1,350. To this should be added about £20 for structural improvements since, making in all £1,570. Now if, for the sake of argument, the property were sold for £1,670, there seems no reason to doubt that Somerset House would bold this to be £100 increment on site value. The absurdity of such a finding, however, is shown by the actual position of affairs. The land in the neighbourhood has been covered with houses of an inferior class, and in consequence the above property, though in excellent condition, has greatly depre- ciated in value. The owner has advertised it for sale at £1,200, but without success. Assuming, however, that a. purchaser is found at this figure, there will be a decrement of £370 on the original site value (according to above method of reckoning), which was £200. That is to say, the present site value is minus £1701 This example (and there are many such) also illustrates the injustice of taxing increment without allowing compensation in cases of decrement.—I am, Sir, &c.,
G. F. D.
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