22 FEBRUARY 1913, Page 16

INCREMENT DUTY PAYABLE WHEN PROPERTY IS SOLD AT A LOSS.

[To THE EDITOR OF THE "SPECTATOR."]

Snt,—Unfortunately for the owners of house property Mr. Frank Perks's contention is correct. The main object of the now celebrated " White Paper" is to enable the Chancellor of the Exchequer to levy increment duty on losses. Almost the only other object is to enable him to levy it on the supposed profits of the unfortunate builder, under the pretext of their being " windfalls." Those are practically the only "occasions" on which it can be levied. The Finance Act, 1909-10, at once reduced the value of all house property by over twenty per cent., partly on account of the taxation which it authorized, and partly on account of the fear that more was to come because Mr. Lloyd George said that what he had imposed was "only a beginning." It will take house property many years to return the value it had on April 30th, 1909—if it ever does return. No increment duty can therefore be levied on profits for many years. Hence the production of the " White Paper," and hence the Chancellor's stipulation that his promised Commission should not be allowed to report on "the policy " of the Finance Act, 1909-10.—I am, Sir, &c.,