FARMING. (Hansard, 23 April 1941)

§ Mr. Benson
This was one of the Resolutions which I welcomed more than any others. At present, the opportunity given to farmers to dodge backwards and forwards between Schedule B and Schedule D puts them in the position that they can practically avoid payment of any Income. Tax whatever. I am not sure how far this Resolution is going until we have the Finance Bill before us, but I hope that the Clause will be a wide and embracing one and that it will put a stop to the avoidance of taxation, which has been permissible hitherto. I am not sure whether every farmer is going on Schedule D—possibly this will apply only to farmers of a certain acreage or rental—but I hope that it will prevent even these farmers coming below the prescribed rental from dodging backwards and forwards between Schedule B and Schedule D in order, primarily, to avoid taxation.

§ The Financial Secretary to the Treasury (Captain Crookshank)
As the hon. Member has said, it will be much easier to discuss this when we have the actual terms of the Bill, but I would point out that this measure was first foreshadowed by my right hon. Friend the Minister of Agricul- 209 ture in June last, when he announced the crop prices for the 1940 crop; and after that my right hon. Friend the Chancellor of the Exchequer, in reply to a Question in this House in August, said that this provision would be included in the Finance Bill. I merely say that to show that it is not unexpected by the people who are to be caught by the proposal. It is not to apply to all farmers, of course, but only to the larger farmers. The present intention is that it will apply to farmers coming above the limit of £300 annual value. That annual value may not be all in one farm; it will govern the farmers' farming operations in different places, so as to bring farmers more in line with the general system of taxation of trading. I do not think the hon. Gentleman will wish me to take the matter further than that. As I think my right hon. Friend said in his Budget speech, we expect the additional yield of the tax to be £1,000,000 this year, and £3,000,000 in a full year.

§ Mr. Benson
I would urge the right hon. and gallant Gentleman not to limit the Clause to £300 annual value, at any rate as far as the option to dodge backwards and forwards from one Schedule to another is concerned. That dodging backwards and forwards is primarily for tax avoidance. If the small farmer cannot be bothered to make out the Schedule D return normally, he ought not to have the option of making it out when it suits him and then dodging back to Schedule B.