(2) That the term "woodlands managed on a commercial 

 basis" should be interpreted as meaning all woodlands, 

 including shelter-belts and strips which do not form 

 part of pleasure grounds or gardens, and which are not 

 managed exclusively for game preserves. There would 

 appear to be no reason why certain woods in policy 

 grounds should not be managed for commercial 

 purposes. 



(3) That the assessment under Schedules B or D in respect of 



woodlands should be considered as " earned income " 

 in the same way as similar assessments in the cases of 

 agricultural subjects. This would be of benefit to 

 small estates, and would be no more than reasonable. 



(4) That so far as any of these matters cannot be determined 



by regulations issued by the Inland Revenue, the 

 necessary alterations should be made in the next 

 Finance Bill. 



A reply has now been received from the Chief Inspector of 

 Taxes, Somerset House, W.C., as follows : — 



" The income from woodlands managed on a commercial basis 

 would normally be regarded as ' earned ' income, whether 

 assessed under Schedule B or under Schedule D, and would be 

 entitled to reduced rates of tax where the occupier's total income 

 does not exceed ^2500. 



" I will forward the remaining suggestions that your Committee 

 have been good enough to make to the Board of Inland 

 Revenue for consideration, as they appear to be matters that 

 could be dealt with effectively only by means of legislation." 



Excess Profits Duty. 



On this subject the Secretary of the Board of Agriculture and 

 Fisheries, London, under date 28th January 1916, writes as 

 follows : — 



" Sir, — I am directed by the President of the Board of Agri- 

 culture and Fisheries to inform you that he has been in communi- 

 cation with the Chancellor of the Exchequer on the subject of 

 Excess Profits Duty on timber, and that Mr M'Kenna has 

 authorised him to state that even if the provisions of the 

 Finance Act (No. 2), 191 5, which deal with Excess Profits 

 Duty apply to the profits derived by landowners from the sale 

 of their timber, it is agreed that in the case of ' commercial ' 

 woodlands assessed to Income Tax under Schedule B the 

 profits for the purpose of Excess Profits Duty shall be taken 

 to be the amount assessable under that Schedule. 



" In the case of woodlands which are not run on * commercial ' 

 lines, there would be no trade or business and the question of 

 Excess Profits Duty would therefore not arise. 



