HC Deb 02 July 1942 vol 381 cc502-3
54. Mr. Price

asked the Chancellor of the Exchequer whether the £2 an acre ploughing subsidy is to be regarded as revenue liable to Income Tax or as capital and, therefore, an item which is not brought into trading accounts?

Sir K. Wood

In the view of the Board of Inland Revenue the payment referred to is of a revenue nature and should be taken into account in computing profits for taxation purposes.

Mr. Price

Is it not a fact that a court case is pending on this matter, and will the Chancellor's present view be modified in view of the decision which has been taken in that case?

Sir K. Wood

No, Sir. There has been a decision taken by the Special Commissioners of Income Tax on the matter, but the Board propose to maintain their view, and, if necessary, to seek a ruling from the courts if the decision is opposed.

Lieutenant Butcher

Does my right hon. Friend realise that farmers have not the means to contest a decision of the Special Board, whereas the Inland Revenue have the whole resources of the State at their command?