HC Deb 29 January 1981 vol 997 cc504-5W
Mr. Heddle

asked the Chancellor of the Exchequer 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.

Mr. Peter Rees

[pursuant to his reply, 27 January 1981, c. 359]: I regret that this information could be provided only at disproportionate cost.

Mr. Heddle

asked the Chancellor of the Exchequer 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.

Mr. Peter Rees

[pursant to his reply, 27 January 1981, c. 359]: I regret that the information asked for by my hon. Friend is not available.

Mr. Heddle

asked the Chancellor of the Exchequer (1) 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;

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

(3) 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 roll-over relief basis.

Mr. Peter Rees

[pursuant to his reply, Tuesday 27 January 1981, c. 359–60]: I have noted my hon. Friend's view that a development land tax roll-over relief should be provided for development value realised on the disposal of agricultural land. As he will appreciate, a relief which is applicable to one tax is not necessarily appropriate for another. If relief were given only for amounts invested in buildings, plant and machinery provision would have to be made for the deferred liability to be paid when the plant and machinery was sold. This would be difficult.

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