§ 59. Mr. PETOasked the Chancellor of the Exchequer whether he is aware that the wholesale co-operative societies have recently bought a further 4,000 acres of land in Gloucestershire, making a total in the past two years of 25,000 acres of land purchased; whether he is aware that the society propose to occupy this land for the purpose of agriculture; and whether, in these circumstances, the privileged position of co-operative societies in respect of payment of Income Tax will extend to them in their capacity as farmers, or whether the society will be required to pay the same Income Tax as other occupiers of land for agricultural purposes under the proposed provisions of the new Finance Bill?
§ Mr. BONAR LAWI would refer my hon. Friend to the provisions of the Industrial and Provident Societies Act, 1893, from which he will see that the exemption from Income Tax conferred upon co-operative societies within the scope of that Act is confined to Schedules C and D of the Income Tax Acts, and does not afford relief from the duty chargeable in respect of the ownership or occupation of land
§ Mr. PETOWould not the profit on farming this land come under Schedule D if the co-operative societies elected to be charged upon the actual profits made, and in that case would they not be excused altogether?
§ Mr. BONAR LAWI think not. I will look into it, and if the hon. Member will put down a definite question I will answer it.
§ 62 and 63. Captain WRIGHTasked the Chancellor of the Exchequer (1) whether under his Budget it is proposed that policies and lands attached to and occupied with residences shall be compulsorily assessed to Income Tax on the basis of twice their annual value under Schedule B, or whether the option of assessment under Schedule D promised by him will be extended to them; (2) whether under his Budget proposals woodlands are to be compulsorily assessed at twice their annual value under Schedule B, or whether the option of assessment under Schedule D will in all cases be extended to them?
§ Mr. BONAR LAWThe option of election for assessment to Income Tax under Schedule D instead of Schedule B is confined to lands occupied for the purposes of husbandry only, and to woodlands managed on a commercial basis and with a view to the realisation of profits.
§ 63. Captain WRIGHTasked the Chancellor of the Exchequer, having regard to the fact that nearly all farms are occupied under a Michaelmas or Lady Day entry and that the farming year, upon which Income Tax under Schedule D is assessed, will be calculated from one or other of those dates, if he will state how it is proposed to enable fanners who have not already a valuation of their stock and crops as at the material date to avail themselves of their right to be assessed under Schedule D?
§ Mr. BONAR LAWIn the absence of an election for assessment under Schedule D—that is, on the average of the three preceding years—a farmer would be assessed under Schedule B in the ordinary course, but in that case, if he finds that his actual profits for the year are less than the amount of the assessment, he can claim a corresponding reduction of the charge, and figures for the one year only will be required. As I have previously stated, all possible assistance will be afforded in any case in which a farmer finds difficulty in establishing his claim.
§ Captain WRIGHTIs the farmer to be allowed that for one year or on the average of three years?
§ Mr. BONAR LAWMy answer says that if the farmer did not elect to come under Schedule D and made a claim it would be on the profits for one year only.
§ Major E. WOODCan the right hon. Gentleman say up to what date it will be open to a farmer to come under Schedule B?
§ Mr. BONAR LAWI cannot say that without looking into it.