Farmers (Profits)

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asked the Chancellor of the Exchequer what, for the latest available period, was the gross trading profit of farmers for tax purposes; how many persons were in each income range; what was their total income; if he will distinguish between companies and other persons; and what was the taxable income after relief.

The latest available figures are:

Agricultural companies	Accounting periods ending in the financial year to
	31.3.1978	31.3.1979
Number with gross trading profit for tax purposes ('000)	7	8
Gross trading profit for tax purposes (£m)	180	220
Taxable income after reliefs (Profits chargeable to CT) (£m)	50	50

Agricultural companies are those whose main activity is agriculture. Their trading profits may include profits from nonagricultural activities. Companies whose main activity is not agriculture are excluded although they may also carry on agricultural activities.Gross trading profit is after deduction of short-term interest and before any adjustments for losses, stock relief and capital allowances.Taxable income after reliefs includes income other than trading profits and is after deduction of losses, stock relief, capital allowances and other reliefs.

Individuals	Income tax year 1978–79
Number of cases ('000)	297
Gross profit for tax purposes (£m)	1,280
Taxable profit (£m)	850

Source: Survey of personal incomes 1978–79.

The number of cases is the number of individuals with self employment income whose largest source of profit is agriculture. Partners are counted individually. Wives are counted separately from their husbands.

Gross profit includes balancing charges and stock relief withdrawn. It also includes any non-agricultural profits of the individuals concerned but excludes the agricultural profits of individuals whose largest source of profit is not agriculture. The profit was mainly earned in accounting periods ending in the year to 5 April 1978.

Taxable profit is gross profit less losses, stock relief and capital allowances so far as allowed from 1978–79.

The only figures available by range are for individuals Income tax year 1978–79
Range of gross profit (lower limit)	Individuals ('000)	Gross profit (£m)
^*NIL	16	—
1	56	26
1,000	25	31
1,500	24	41
2,000	25	55
2,500	16	43
3,000	18	59
3,500	13	49
4,000	11	48
4,500	9	43
5,000	16	88
6,000	14	88
7,000	12	91
8,000	13	111
10,000	10	104
12,000	7	97
15,000	6	105
20,000
and over	6	204
All Ranges	297	1,280
^* Including cases with losses.

Volume 19: debated on Monday 8 March 1982