§ Mr. Priceasked the Chancellor of the Exchequer whether he will consider, in assessments for Income Tax on farms, permitting valuations of livestock which do not take into consideration the fluctuations of the market, thereby securing that profits thus assessed will be real and not paper profits?
§ Sir K. WoodIt is permissible for farmers in valuing their livestock for the purpose of computing their farming profits for assessment under Case I of Schedule D to adopt the normal commercial practice of valuing trading stock at cost or market value whichever is the lower. This practice ensures that tax is not assessed on any unrealised profit which might be shown by a comparison of the market value of the stock on hand with the cost of its production.