§ Mr. Nicholas Bakerasked the Chancellor of the Exchequer if he will review the applicability of the five-year limit upon restriction of relief for losses in farming and market gardening under section 168 of the Income and Corporation Taxes Act 1970 in the light of present economic circumstances; and if he will make a statement about the Inland Revenue's administration of the exemption from such restriction contained in subsection (3) of section 180 of the 1970 Act.
§ Mr. Peter Rees[pursuant to his reply, 26 February 1981, c. 441]: I have noted this suggestion, but I am not aware of any evidence that the restriction on the setting off of losses is causing difficulties for the genuine farming community. Farming activities, such as the breeding of pedigree livestock, which by their nature cannot reasonably be expected to show a profit within the statutory period are specifically provided for by subsection (3) of section 180.
Since each case must be looked at in the light of its own facts, I should be glad to examine any particular cases which my hon. Friend may have in mind.