HC Deb 22 April 1929 vol 227 cc642-3W
Mr. R. MORRISON

asked the Chancellor of the Exchequer what amount of relief has been accorded to farmers during the last four years for loss in farming, under Section 34 and Rule 6, Schedule B, of the Income Tax Act, 1918?

Mr. SAMUEL

The relief in question may be allowed either by way of discharge of Income Tax assessments or by way of repayment. No statistics are collected of relief by way of discharge and the only information available relates to the amount of income on which repayment was made in respect of farming loss or diminution of income. The income on which repayment was made in the years 1925 to 1928 was as follows:

Great Britain and Northern Ireland.
£
1925–26 2,066,000
1926–27 2,127,000
1927–28 3,236,000
1928–29 3,259,000

It should be borne in mind that the repayments in a given year relate mainly to losses incurred in the preceding year.

Mr. R. MORRISON

asked the Chancellor of the Exchequer (1) whether the general Commissioners, in considering claims for relief under Section 34 and Rule 6, Schedule B, of the Income Tax Act, 1918, have regard to the amount of wages paid, for example, in a case where, but for the fact that high wages had been paid, the accounts showing a loss would have shown a gain, would relief be granted for the loss;

(2) whether, in considering claims for relief under Section 34 and Rule 6, Schedule B, of the Income Tax Act, 1918, the general Commissioners have regard to any limit of loss per acre, for example, would a loss of £30 per acre in bringing poor or run-down land into a state of high cultivation be allowed, whilst the average loss in large farms was only £1 or £2 per acre?

Mr. SAMUEL

Under Section 34 the General Commissioners are required to be satisfied as to the amount of the loss and under Rule 6 as to the actual amount of the profits or gains arising from the occupation of lands for the purpose of husbandry only. I can only answer the hon. Member's question by saying in general terms that if the loss or profit, as the case may be, shown by the accounts produced by a claimant does not, in the opinion of the Commissioners concerned, correctly represent the true result for purposes of Income Tax, it is open to those Commissioners to decide on the facts of the case what the correct figure should be.