§ Mr. Emeryasked the Chancellor of the Exchequer whether he will make provision in order to ensure that the compensation received by farmers for animals slaughtered because of foot-and-mouth disease is not taxed as income if the replacement animals are not purchased before the end of the financial year.
§ Mr. DiamondWhere a farmer makes an election for the herd basis under Section 23 of the Finance Act, 1953, compensation for the compulsory slaughter of animals forming part of the herd is not taxable until there can be offset against it the cost of replacement animals, and any excess of the compensation over the cost of replacing by inferior animals is left out of account in computing profits.