§ Mr. Michael Forsyth
asked the Secretary of State for Scotland what representations he has received advocating that the outgoers scheme for dairy farmers should not be taxable; and if he will make a statement.
§ Mr. John MacKay
My right hon. Friend has received such representations from one hon. Member and from one branch of the National Fanners Union of Scotland.
In deciding the terms of the scheme, the Government considered that it would not be appropriate to exempt payments from taxation. However, special arrangements were introduced to allow applicants to choose whether these payments should be treated as income or capital gains for tax purposes.