Lord CHELWOODasked Her Majesty's Government:
Whether consideration will be given to making the enclosing of woodlands on Sites of Special Scientific Interest against grazing animals, and other 246WA expensive maintenance work, rank for tax in terms of Section 68 of the Capital Allowances Act 1968 and Section 168 of the Income and Corporation Taxes Act 1970, in order to encourage landowners to protect and improve such sites.
§ The MINISTER of STATE, TREASURY (Lord Cockfield)In general, such expenditure would rank for tax relief under the existing law. The position is that where such expenditure is incurred by a farmer, or by the occupier of woodlands taxed under Schedule D, relief from tax is available for any maintenance expenditure as a normal trading expense —and under Section 168, Income and Corporation Taxes Act 1970, if there is a loss—and for capital expenditure under Section 58, Capital Allowances Act 1968. Landlords can similarly obtain relief under Section 68, Capital Allowances Act 1968, but relief for maintenance expenditure will be given in charging the rents to tax, and any excess expenditure may be relieved under the provisions of Section 72, 73 or 79, Income and Corporation Taxes Act 1970.