Agricultural Land (Hansard, 27 January 1981)

§ Mr. Heddle

asked the Chancellor of the Exchequer (1) what is the total acreage of agricultural land which is attracted to capital transfer tax in each of the years 1976 to 1981 inclusive; and what proportion of the annual total acreage for those years is accounted for agricultural land which has been let;

(2) what is the total amount of capital transfer tax derived from agricultural land which is (a) farmed by the landowner and (b) which is let by the owner for each of the years 1976 to 1980 inclusive;

(3) what is the total amount of development land tax which has been paid on agricultural land transactions in the years 1976–77, 1977–78, 1978–79 and 1979–80; and if he will give an estimate for 1980–81;

(4) what is the total amount of capital gains tax which has been deferred by way of roll-over relief on disposal of agricultural land for the years 1976 to 1980 inclusive;

(5) whether he is satisfied, in the light of the present cost of agricultural plant and machinery, that the existing capital gains tax roll-over relief limited by the development land tax Act 1976 threshold of £50,000 is adequate;

(6) what is the total amount of tax obtained from investment income surcharge levied on rents from agricultural land in each of the years 1976 to 1981 inclusive;

(7) whether his department will examine methods of allowing owners of agricultural land who let their land where economic and land management considerations make this desirable (a) to a reduction of the level of investment income surcharge on agricultural land that is let, (b) to capital gains tax roll-over relief, (c) to retirement relief where up to £50,000 of gains is exempt from tax and (d) to the recovery of VAT on the cost of repairs on land which is let; and if he will make a statement;

(8) what proposals his Department has for amending section 54(1) and section 528(3) of the Taxes Act 1970 in the light of the tax liabilities on agricultural land owners imposed as a result of the unfair inter-action of these sections upon the proceeds of sale by compulsory purchase orders; and if he will make a statement;

(9) if he will examine the merits of awarding a rollover system of tax relief on development land tax levied 358W on the proceeds of sale of agricultural land when those proceeds of sale are then re-invested in buildings, plant and machinery;

(10) if he will seek to resolve the anomaly whereby a landowner who is entitled to roll-over relief by the deferring of capital gains tax on disposals since 1965 is not entitled to relief on development land tax on a similar rollover relief basis;

(11) what proposals his Department has for adjusting capital transfer tax in order to encourage owners to let agricultural land where economic and land management considerations make this desirable;

(12) whether he will estimate the number of acres which have to be sold to pay for capital transfer tax by a landowner who (a) farms his own land and (b) lets his land for each of the following units of acreage: 100 acres, 500 acres, 1,000 acres and 2,000 acres.