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Farmers (Trading Profits)

Volume 21: debated on Monday 29 March 1982

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asked the Chancellor of the Exchequer, further to his answer of 8 March, Official Report, c. 299–300. concerning the trading profits for farmers for tax purposes (a) what is the value of the principal reliefs given to agricultural companies, (b whether and to what extent the gross profit of individuals is struck after payment of rent, imputed rent on owner-occupied land, interest charges and payments to wives and (c) how many wives are counted separately from their husbands; and what is the gross profit made by wives in each range of gross profit.

The value of the principal reliefs given to agricultural companies, was as follows:

Accounting periods ending in the financial year to:
31 March 1978 £ million31 March 1979 £ million
Capital Allowances120150
Stock Relief5055
These values represent the amount allowed in respect of the period. The amount actually set off against profits in the same period is not available but would be less.In arriving at the gross profit of individuals, deductions for payments of rent, wives' wages and interest have, where appropriate, been made. There are, however, no figures available of the extent to which this has been done. No deductions have been made for imputed rent of owner-occupied land, which is no longer taxable.Within the total of 297,000 individual cases, there were 49,000 wives counted separately from their husbands. The number of wives and their gross profits by range of gross profit are as follows:

(2) what was the proportion of those at work who paid higher rates of tax than the standard rate in 1953, 1963, 1973 and at the latest convenient date.

The available information from the Inland Revenue's survey of personal incomes, which covers all people for whom income tax records are held, is shown in the following table. It relates to those under 65 years of age who do not receive a pension. Married couples are counted as one. Information in this form for 1953–54 is not available. Figures for 1981–82 are provisional and are based on projections from the 1979–80 survey of personal incomes.

Income Tax Year 1978–79
Range of gross profit (lower limit) £Wives '000Gross profit £ million
20,000 and over126
All ranges49189