HC Deb 03 May 1922 vol 153 cc1372-3W

asked the Secretary to the Treasury whether he is aware that surveyors of taxes are requiring that working horses, dairy cattle, and breeding ewes should not be reckoned in a farmer's valuations as income for assessment to Income Tax but as part of the capital equipment of the farm, and that the effect of this, while prices are falling, is to increase the farmer's taxation by depriving him of the benefit of the fall in value, of this stock, whereas during the previous period of rising prices he has had to pay on a supposed profit due to the increased value of this stock shown in his valuation; and whether he will reconsider this change of method of assessment at a time when prices are generally falling?


I am not aware of any case where a farmer during the period of rising prices has paid Income Tax on the potential profit due to the increased value of his stock and has been refused the benefit for taxation purposes of the subsequent fall in value. If my hon. Friend has in mind any case in which this method has been adopted, I shall be happy to have the matter looked into if he will furnish me with the necessary particulars.