HC Deb 29 March 1982 vol 21 cc21-2W
Mr. Austin Mitchell

asked the Chancellor of the Exchequer, further to his answer of 8 March, Official Report, c. 299–300. concerning the trading profits for farmers for tax purposes (a) what is the value of the principal reliefs given to agricultural companies, (b whether and to what extent the gross profit of individuals is struck after payment of rent, imputed rent on owner-occupied land, interest charges and payments to wives and (c) how many wives are counted separately from their husbands; and what is the gross profit made by wives in each range of gross profit.

Mr. Ridley

The value of the principal reliefs given to agricultural companies, was as follows:

Accounting periods ending in the financial year to:
31 March 1978 £ million 31 March 1979 £ million
Capital Allowances 120 150
Stock Relief 50 55

These values represent the amount allowed in respect of the period. The amount actually set off against profits in the same period is not available but would be less.

In arriving at the gross profit of individuals, deductions for payments of rent, wives' wages and interest have, where appropriate, been made. There are, however, no figures available of the extent to which this has been done. No deductions have been made for imputed rent of owner-occupied land, which is no longer taxable.

Within the total of 297,000 individual cases, there were 49,000 wives counted separately from their husbands. The number of wives and their gross profits by range of gross profit are as follows:

(2) what was the proportion of those at work who paid higher rates of tax than the standard rate in 1953, 1963, 1973 and at the latest convenient date.

Mr. Ridley

The available information from the Inland Revenue's survey of personal incomes, which covers all people for whom income tax records are held, is shown in the following table. It relates to those under 65 years of age who do not receive a pension. Married couples are counted as one. Information in this form for 1953–54 is not available. Figures for 1981–82 are provisional and are based on projections from the 1979–80 survey of personal incomes.

Income Tax Year 1978–79
Range of gross profit (lower limit) £ Wives '000 Gross profit £ million
NIL 3 —
1 9 4
1,000 5 6
1,500 4 7
2,000 4 9
2,500 3 8
3,000 3 11
3,500 2 9
4,000 2 8
4,500 1 7
5,000 3 15
6,000 2 11
7,000 2 15
8,000 1 12
10,000 1 15
12,000 1 14
15,000 1 12
20,000 and over 1 26
— —
All ranges 49 189