HC Deb 31 July 1975 vol 896 cc627-8W
63. Mr. Geoffrey Johnson Smith

asked the Chancellor of the Exchequer if he will publish the results of the interdepartmental inquiry into the effect of capital taxation on agriculture when that inquiry is completed.

65. Mr. Hawkins

asked the Chancellor of the Exchequer if he will make a statement on the terms of reference of the interdepartmental inquiry into the effects of capital taxation on agriculture; and if he will indicate when the results of that inquiry will be made known.

Mr. Joel Barnett

The terms of reference of the inquiry to which the hon. Members refer are as stated in the White Paper "Food From Our Own Resources" (Command 6020), areview of the effect of capital taxation on agricultural production". As my hon. Friend the Parliamentary Secretary to the Ministry of Agriculture, Fisheries and Food said in reply to the hon. Member for Norfolk, South (Mr. MacGregor) on 9th July, it is too soon to say when the study will be completed or in what form its results will be made known.

64. Mr. Michael Shaw

asked the Chancellor of the Exchequer what yield the capital transfer tax and the wealth tax are expected to produce from agriculture; and to what extent this has been taken into account in the White Paper "Food from our own Resources".

Mr. Joel Barnett

It will be two or three decades before capital transfer tax produces its full yield. As far as can be foreseen, the eventual yield of CTT on agriculture at present capital values will probably lie in the range of £75 million-£125 million. The yield from wealth tax will depend on decisions yet to be taken about the form and weight of the tax including the treatment of husband and wife and the special considerations affecting the value of agricultural land. On the second part of the Question, the Government announced in the White Paper the setting up of an interdepartmental study into the effects of capital taxation on agricultural production.

Mr. Spence

asked the Chancellor of the Exchequer if he will state and compare United Kingdom capital taxation provisions affecting the farming industry with those prevaling in each of the EEC countries; and if he will make a statement.

Mr. Denzil Davies

The information the hon. Member is seeking will take some time to assemble and I shall write to him as soon as possible.