§ Mr. Welshasked the Chancellor of the Exchequer whether he will take steps to allow relief from capital transfer tax on let farms similar to that allowed for owner-occupiers; and what would be the cost of such a policy in the United Kingdom and Scotland.
§ Mr. Denzil DaviesThe introduction of a relief from capital transfer tax for the owners of let agricultural land was one of the recommendations of the Agriculture EDC. These recommendations are being considered.
The estimated annual cost of extending the relief in the way suggested would be £2.5 million for Scotland and £20 million for the whole of the United Kingdom. In the absence of detailed statistics on let farms held by discretionary trusts these estimates do not reflect the cost of extending the relief to such trusts. This might be substantial in the long term.