Lord Chelwoodasked Her Majesty's Government:
Whether they are giving urgent thought to the encouragement by new fiscal measures of landowners who let agricultural land; and whether they will list the main respects in which an owner who lets such land is disadvantaged in comparison with an owner who farms his own land.
§ The Chancellor of the Duchy of Lancaster (Lord Cockfield)I would remind my noble friend that the tax burden on agricultural landlords has been eased very considerably in recent years.
The capital transfer tax relief for agricultural land has been extended to let land and the rate of relief increased to 30 per cent. In addition, the instalments by which payment can be made of tax on let agricultural land have been made interest free in line with the treatment of tax on land in hand and the period over which payment may he made has been extended to 10 years for both.
A further step is now being taken. Private landowners generally will he greatly encouraged by the proposal by my right honourable friend the Chancellor of the Exchequer to abolish the surcharge on investment income. The reduction in the highest rate of capital transfer tax to 60 per cent. should also help. There are, as my noble friend suggests, differences in tax of the treatment between landowners and those who farm their land. But these do no more than reflect the different activities carried out by those who hold investments and those who engage in a trade.