§ Lord Grantchester
asked Her Majesty's Government:
For each of the years 1996, 1997 and 1998, what is the amount of income tax refunds paid to farmers as a result of profit averaging and loss relief claims. [HL4209]
§ Lord McIntosh of Haringey
It is estimated that farmers reduced their tax liabilities by about £80 million by averaging 1997–98 profits with those for earlier years, carrying back 1997–98 losses to earlier years or setting 1997–98 losses against other 1997–98 income. This excludes relief arising from carrying forward 1997–98 losses to later years, the value of which is not yet known. The equivalent estimate for 1996–97 is £30 million. No estimate is available for 1995–96.
It is not known how much of these reductions resulted in actual refunds of tax and how much was set against other amounts due.