§ Mr. Baldryasked the Chancellor of the Exchequer if he will consider relaxing the present 20 per cent. rule of the valuation of dairy cattle on the herd basis.
§ Mr. Nicholas Bakerasked the Chancellor of the Exchequer if, in the light of the imposition of quotas upon dairy farms, he will seek to allow the advantageous treatment for taxation of heard benefits to apply to permanent reductions in cow herds of less then the current prescribed amount of 20 per cent.
§ Mr. MooreI have considered the operation of the herd basis, but decided it would not be appropriate to make changes to the rules determining whether profits on the sale of production animals are brought to account for tax purposes. In the light of the imposition of milk quotas, I decided to amend clause 47 of the Finance Bill to allow fresh elections for the herd basis, permitted under subsection (6) of the clause, to take effect for periods earlier than originally proposed. The House agreed to the necessary amendment during Report stage of the Finance Bill last week.