HL Deb 12 March 1946 vol 140 cc89-90WA
THE EARL OF MANSFIELD

asked His Majesty's Government whether they will state to what dates, for planting and natural regeneration respectively, is the proposed planting grant of £7 10s. 0d. per acre, to be made retrospective.

THE JOINT PARLIAMENTARY SECRETARY OF THE MINISTRY OF AGRICULTURE AND FISHERIES (THE EARL OF HUNTINGDON)

As regards planting, grants will be made available for satisfactory work done during the planting season 1945–46. The grants will become payable as follows:

  1. (a) Woods suitable for dedication: on completion of a formal Dedication Agreement.
  2. (b) Other Woodlands: after their status in respect of dedication has been determined.

Grants for successful natural regeneration will also be made available from January 1st, 1946. The amount of the grant per acre and the time of payment will be the same as for plantations.

THE EARL OF MANSFIELD

also asked His Majesty's Government whether it is realized that the proposed planting grant of £7 IOS. per acre, should it be considered liable to Income Tax, will be reduced to little more than half, and in the case of many Surtax payers, to only a small percentage of its face value; and whether they will accordingly take steps to ensure that this grant is tax free.

THE EARL OF HUNTINGDON

In the case of an occupier of woodlands who elects under Rule 7 of Schedule B of the Income Tax Act, 1918, to be assessed on his profits under Schedule D instead of under Schedule B, the planting grant, so far as it is a contribution towards expenditure of a revenue nature, will be taken into account for Income Tax purposes, but the actual revenue expenditure on planting will be allowed as a deduction in computing the profits or losses arising from the occupation of the woodlands. It would clearly be wrong to treat the expenditure as an admissible outgoing without bringing into credit against it the grant which is made towards it.

House adjourned at eight minutes past seven o'clock.