HC Deb 03 May 1974 vol 872 cc247-8W
39. Mr. Ralph Howell

asked the Chancellor of the Exchequer, in the light of the Budget Statement, if he will institute an inquiry into how a wealth tax would apply to the agricultural community with special reference to owner-occupiers who in paper terms are wealthy while owning a very small farm.

Dr. Gilbert

The Green Paper which is to be published in the summer will provide a basis for the discussion of such questions.

40. Mr. Charles Morrison

asked the Chancellor of the Exchequer if he will clarify the position on farmers' overdrafts, in the light of his Budget Statement.

Dr. Gilbert

Interest on an overdraft which is incurred wholly and exclusively for the purposes of a farm business will continue to be deductible as an expense for tax purposes.

Mr. Peter Mills

asked the Chancellor of the Exchequer what is his estimate of the cost of the Budget proposals to the farmers of the South-West region of England.

Dr. Gilbert

The increases in existing taxes and national insurance contributions announced in the Budget will affect farmers in much the same way as other sections of the community. The effects on farmers of the proposed new taxes on wealth and capital cannot be assessed until detailed proposals have been published.