FINANCE BILL, 1909 149 



stage in the House of Commons, and not denied by the Chancellor 

 of the Exchequer. 



The following example will show this : If land which is purely 

 agricultural on 30th April, 1909, is valued at 15 per acre, 

 increases in value owing to rise in agricultural values to 35 per 

 acre in, say, 1919, and is sold for building purposes in 1925 at 

 80 per acre, the Increment Value Duty is charged, not on the 

 basis of between 35 and 80, but between 15 and 80 ; thus 

 showing that Increment Value Duty will, in fact, be charged on 

 the agricultural value as 20 per acre. 



5. The Undeveloped Land Duty will also be charged on an 

 enormous area of agricultural land in 1 - the form of land which 

 has a future possibility as ripe building land. 



The definition of undeveloped land is given in the Bill as 

 follows : 



16. (2) For the purposes of this part of this Act land shall 

 be deemed to be undeveloped land if it has not been developed 

 by the erection of dwelling-houses or of buildings for the 

 purposes of any business, trade or industry other than 

 agriculture (but including glasshouses or greenhouses), or 

 is not otherwise used bona fide for any business, trade or 

 industry other than agriculture. 



The minimum value of undeveloped land is defined thus : 



17. (1) Undeveloped Land Duty shall not be charged in 

 respect of any land where the site value of the land does not 

 exceed fifty pounds per acre. 



In the case of agricultural land of which the site value, 

 exceeds fifty pounds per acre, Undeveloped Land Duty 

 shall only be charged on the amount by which the site value 

 of the land exceeds the value of the land for agricultural 

 purposes. 

 From the above it is clear that 



(1) Any land having possibilities of future building must 

 be charged with Undeveloped Land Duty, or, in the words 

 of the Finance Act, 1894 



" Where part of the principal value is due to the 

 expectation of an increased income." 



(2) If that value at the time of valuation is 50 per acre 

 or under, it is exempt even in cases 



" Where part of the principal value is due to the 

 expectation of an increased income." 



(3; That the agricultural value as found at 30th April, 

 1909, will be deducted. 



(4) Under Clause 3 (5) an allowance of 10 per cent, is 

 to be made on the original site value. 



6. It is admitted that a very large proportion practically 

 the whole of the land chargeable with Undeveloped Land Duty 

 is, in fact, occupied as agricultural land, market gardens or 



