HC Deb 12 July 1979 vol 970 cc648-9
12. Mr. Marland

asked the Minister of Agriculture, Fisheries and Food what discussions he has had in connection with alleviating the burden of capital transfer tax on agricultural land.

The Parliamentary Secretary to the Ministry of Agriculture, Fisheries and Food (Mr. Jerry Wiggin)

My hon. Friend will be aware that my right hon. and learned Friend the Chancellor of the Exchequer announced in his Budget Statement that he would be instituting a review of the capital taxation system with a view to making it simpler and less oppressive. Clearly, one of the issues to be considered in this review is the impact of capital transfer tax on agricultural land.

Mr. Marland

As a farmer, I naturally welcome the message from my right hon. and learned Friend the Chancellor of the Exchequer. However, land ownership is still vulnerable to a future Government who may seek to launch a dogmatic attack on land ownership; a Government who are not sympathetic to the needs of agriculture. Inflation has had—[HON. MEMBERS: " Question."]

Mr. Speaker

Order. The hon. Gentleman is addressing the House. He should ask a question. Moreover, the Minister is not responsible for future Governments.

Mr. Marland

My question to my hon. Friend is this, Mr. Speaker: will he seek to change the nature of capital taxation in order to prevent the break-up in the future of family farming units which have done so much for this country in the past?

Mr. Wiggin

I am sure that my right hon. Friend will take heed of what my hon. Friend has said. My hon. Friend should appreciate that both the National Farmers Union and the Country Landowners Association are putting such points to us, and through us to my right hon. and learned Friend the Chancellor.

Mr. Costain

Does the Minister appreciate that one problem of French farming is the small farm unit? If action is not taken on capital transfer tax, we shall have the same problem in this country. Will he do something to keep the family farm, which is so important?

Mr. Wiggin

I appreciate the problems of fragmentation. My right hon. Friend is looking into this matter of taxation and farm structure. He will bear my hon. Friend's points in mind.