§ 35. Sir H. Butcherasked the Chancellor of the Exchequer what instructions he has given to his inspectors concerning assessment of tax in cases where a trade of farming is being carried on by a taxpayer on a commercial basis and with a view to the realisation of profits within the meaning of Section 20 of the Finance Act, 1960, and in respect of which the Minister of Agriculture, Fisheries and Food has made or has undertaken to make grants under the appropriate Acts in respect of capital expenditure on the farm by the person carrying on the trade although such trading may result in loss.
§ Sir E. BoyleI am not clear what is the point about which my hon. Friend is concerned. If he will send me further details, I will make inquiries and write to him.
§ Sir H. ButcherI thank my hon. Friend for that reply, but, if he is unable to understand this simple Question, how does he expect the taxpayer to understand the Finance Act? Will he, either now or in writing, give me an assurance that when the skilled officers of the Ministry of Agriculture make a capital grant to a farmer, thus recognising him as farming in a serious manner, the farmer will not be exposed to attack by officials of the Inland Revenue?
§ Sir E. BoyleOne thing I can do is to refer my hon. Friend to the very full explanation given by my right hon. and learned Friend's predecessor in his Second Reading speech on last year's Finance Bill, which is reported in HANSARD, Vol. 622, column 892. That is, I think, the clearest exposition of the point that I know.
§ Sir H. ButcherWill my hon. Friend direct the attention of inspectors of taxes to that and ask them to take the guidance of the officials of the Ministry of Agriculture?