§ Mr. Austin Mitchellasked the Chancellor of the Exchequer what, for the latest available period, was the gross trading profit of farmers for tax purposes; how many persons were in each income range; what was their total income; if he will distinguish between companies and other persons; and what was the taxable income after relief.
§ Mr. RidleyThe latest available figures are:
Agricultural companies Accounting periods ending in the financial year to 31.3.1978 31.3.1979 Number with gross trading profit for tax purposes ('000) 7 8 Gross trading profit for tax purposes (£m) 180 220 Taxable income after reliefs (Profits chargeable to CT) (£m) 50 50 Agricultural companies are those whose main activity is agriculture. Their trading profits may include profits from nonagricultural activities. Companies whose main activity is not agriculture are excluded although they may also carry on agricultural activities.
Gross trading profit is after deduction of short-term interest and before any adjustments for losses, stock relief and capital allowances.
Taxable income after reliefs includes income other than trading profits and is after deduction of losses, stock relief, 300W capital allowances and other reliefs.
Individuals Income tax year 1978–79 Number of cases ('000) 297 Gross profit for tax purposes (£m) 1,280 Taxable profit (£m) 850 Source: Survey of personal incomes 1978–79.
The number of cases is the number of individuals with self employment income whose largest source of profit is agriculture. Partners are counted individually. Wives are counted separately from their husbands.
Gross profit includes balancing charges and stock relief withdrawn. It also includes any non-agricultural profits of the individuals concerned but excludes the agricultural profits of individuals whose largest source of profit is not agriculture. The profit was mainly earned in accounting periods ending in the year to 5 April 1978.
Taxable profit is gross profit less losses, stock relief and capital allowances so far as allowed from 1978–79.
The only figures available by range are for individuals Income tax year 1978–79 Range of gross profit (lower limit) Individuals ('000) Gross profit (£m) *NIL 16 — 1 56 26 1,000 25 31 1,500 24 41 2,000 25 55 2,500 16 43 3,000 18 59 3,500 13 49 4,000 11 48 4,500 9 43 5,000 16 88 6,000 14 88 7,000 12 91 8,000 13 111 10,000 10 104 12,000 7 97 15,000 6 105 20,000 and over 6 204 All Ranges 297 1,280 * Including cases with losses.