§ Mr. Austin Mitchellasked the Chancellor of the Exchequer whether he will publish in the Official Report a table showing for each of the financial years ended 1980 to 1984 the gross trading profit of farmers for tax purposes on the same basis as that used in the replies to questions from the hon. Member for Great Grimsby on 8 March 1982, Official Report, columns 299–300, 29 March 1982, Official Report, columns 21–2, and 21 April 1982, Official Report, columns 92–3, if he will add particulars of the taxable income after reliefs, the numbers in each income band, the number of wives counted separately from their husbands and the gross profit accruing to such wives, and the number of partnerships and partners.
§ Mr. MooreThe available information has been set out in eight tables, each including notes on definition and coverage, a copy of which I am placing in the Library of the House. I regret that information by band of profits is not available for companies, that the source of the information for individuals does not distinguish partnership income from that of sole traders, and that information for periods covering 1984 is not yet available.
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Table 1 Companies Accounting periods ending in the financial year to 31 March 1980 1981 1982 1983 (a) Agricultural companies*
Accounting periods ending in the financial year to 31 March 1980 1981 1982 1983 Number with gross trading profit for tax purposes (thousands) 8 8 8 — Gross trading profit for tax purposes (£ million) 240 220 230 — Taxable income after reliefs (Profits chargeable to CT) (£ million) 50 50 60 — (b) Agricultural and horticultural companies† Number with gross trading profit for tax purposes (thousands) — 10 10 11 Gross trading profit for tax purposes (£ million) — 240 250 300 Taxable income after reliefs (Profits chargeable to CT) (£ million) — 50 60 80 * 1968 standard industrial classification. † 1980 standard industrial classification. Note to part (a) of Table 1:
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.
Notes to part (b) of Table 1:
Information on agricultural companies alone is not available after 1981–82 as, with the introduction of the Standard Industrial Classification (1980 revised), those companies which hire out agricultural machinery (without operatives) were reclassified with other hire companies and the remaining agricultural companies are not identified separately from horticultural companies.
Agricultural and horticultural companies are those whose main activity is agriculture or horticulture. Their trading profits may include profits from non-agricultural and non-horticultural activities. Companies whose main activity is not agriculture or horticulture are excluded although they may also carry on agricultural or horticultural activities.
Notes to both parts of Table 1:
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, capital allowances and other reliefs.
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TABLE 3—Individuals Ranges of gross profit Income Tax Year 1979–80 Number of cases Amount of gross profit Range of Gross profit (lower limit) Husbands plus single people Wives All individuals Husbands plus single people Wives All individuals '000 '000 '000 £ million £ milliion £ million NIL* 13 3 16 — — — 1 36 7 43 16 3 19 1,000 20 4 24 25 5 30 2,000 20 4 24 34 7 41 2,500 21 3 24 45 7 52 3,000 15 4 19 41 11 52 3,500 15 3 18 48 11 59 4,000 11 2 13 43 7 50 4,500 11 2 13 46 10 56 5,000 8 2 10 38 11 49 5,500 15 3 18 84 15 99 6,000 10 2 12 65 14 79 7,000 10 2 12 77 14 91 8,000 15 2 17 129 18 147 10,000 10 1 11 104 13 117 12,000 8 1 9 107 17 124 15,000 7 1 8 117 17 134
Table 2—Individuals (Summary) (a) Individuals in Agriculture (1968 standard industrial classification) Income tax year 1979–80 1980–81 Number of cases (thousands) 300 284 Gross profit for tax purposes (£m) 1,430 1,460 Taxable profit (£m) 942 916 Source: Survey of Personal Incomes 1979–80 and 1980–81.
Notes to part (a) of Table 2:
The number of cases is the number of individuals with self-employment income whose largest source of profit is agriculture.
Gross profit includes balancing charges and stock relief withdrawn. It also includes any non-agricultural profits of the individual concerned but excludes the agricultural profits of individuals whose largest source of profit is not from agriculture. The profit was mainly earned in accounting periods ending in the year before the Income Tax year.
(b) Individuals in Agriculture and horticulture (1980 standard industrial classification) Income tax year 1981–82 1982–83 Number of cases (thousands) 301 305 Gross profit for tax purposes (£m) 1,550 1,630 Taxable profit (£m) 1,020 1,130 Source: Survey of Personal Incomes 1981–82 and 1982–83.
Notes to part (b) of Table 2:
For these years, incomes from agriculture cannot be distinguished from incomes from horticulture. The number of cases is the number of married men and single people whose "main source"—usually but not always the largest source — of earned income is from self employment in agriculture and horticulture; plus the number of married women whose largest source of self employment income is from agriculture and horticulture.
Gross profit includes balancing charges and stock relief withdrawn. It also includes any non agricultural/horticultural profits of the individual concerned but excludes profits from agricultural/horticultural of married men and single people whose "main source" of earned income is not from self-employment in agriculture and horticulture, and of married women whose largest source of self employment income is not from agriculture and horticulture.
Notes to both parts of Table 2:
Taxable profit is gross profit less losses, stock relief and capital allowances so far as allowed for the Income Tax year. Partners are counted individually but cannot be distinguished from sole traders. Wives are counted separately from their husbands.
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Number of cases Amount of gross profit Ranges of Gross profit (lower limit) Husbands plus single people Wives All individuals Husbands plus single people Wives All individuals '000 '000 '000 £ million £ million £ million 20,000 6 1 7 208 24 232 All ranges 252 48 300 1,228 202 1,430 * including cases with losses. The notes to part a. of Table 2, and the general notes to Table 2, apply also to this table.
Source: Survey of Personal income 1979–80.
Note: Individual items may not sum to totals due to rounding.
TABLE 4—Individuals Ranges of gross profit Income Tax Year 1980–81 Number of cases Amount of gross profit Ranges of Gross profit (lower limit) Husbands plus single people Wives All individuals Husbands plus single people Wives All individuals '000 '000 '000 £ million £ million £ million NIL* 5 0 5 0 0 0 1 41 7 47 19 4 23 1,000 18 4 21 22 4 26 1,500 19 5 25 33 9 43 2,000 19 5 24 42 12 54 2,500 11 2 13 30 7 37 3,000 14 3 17 43 11 54 3,500 12 3 15 45 11 56 4,000 8 2 10 35 9 44 4,500 9 2 11 41 9 50 5,000 15 3 19 83 18 100 6,000 12 1 13 74 8 83 7,000 9 2 11 67 17 84 8,000 15 3 18 132 23 155 10,000 8 1 9 82 10 92 12,000 8 1 9 103 16 119 15,000 6 1 7 106 20 126 20,000 9 1 10 285 28 313 All ranges 236 47 284 1,240 216 1,460 * Including cases with losses. Source: Survey of Personal Incomes 1980–81.
Individual items may not sum to totals due to rounding.
The notes to part a of Table 2, and the general notes to Table 2, apply also to this table. With the same industrial coverage (ie excluding horticulture) as used for this table, but otherwise using the new definition of largest or main source of income for subsequent years, given in the note to part b of Table 2, the total number of cases shown above would be reduced to about 267,000 and the amount of gross profit to about £1,440 million. The bulk of these reductions would be within the gross profit range £1 to £1,000.
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TABLE 5—Individuals Ranges of gross profit Income Tax Year 1981–82 Range of gross profit (lower limit) Number of cases Amount of gross profit Husbands plus single people Wives All individuals Husbands plus single people Wives All individuals '000 '000 '000 £ million £ million £ million Nil* 19 2 21 0 0 0 1 35 7 42 17 4 20 1,000 16 4 20 20 6 26 1,500 15 5 20 26 9 35 2,000 19 3 23 43 8 51 2,500 15 3 18 42 7 49 3,000 14 3 17 46 8 54 3,500 10 4 13 36 13 49 4,000 14 3 17 60 11 70 4,500 8 2 10 39 11 49 5,000 15 4 19 82 21 103 6,000 13 2 15 82 15 97 7,000 8 3 11 60 19 80 8,000 12 2 14 107 14 120 10,000 10 2 12 103 23 126 12,000 9 1 10 119 17 136 15,000 9 1 10 153 22 176 20,000 8 1 10 267 39 306 All ranges 250 51 301 1,300 244 1,550 Source: Survey of Personal Incomes 1981–82.
Note: Individual items may not sum to totals due to rounding.
* Including cases with losses.
The notes to part b of Table 2, and the general notes to Table 2, apply also to this table
TABLE 6—Individuals Ranges of gross profit Income Tax Year 1982–83 Range of gross profit (lower limit) Number of cases Amount of gross profit Husbands plus single people Wives All individuals Husbands plus single people Wives All individuals '000 '000 '000 £ million £ million £ million Nil* 20 1 21 0 0 0 1 29 9 38 14 4 18 1,000 17 4 21 20 5 25 1,500 14 4 18 24 7 31 2,000 16 3 20 36 8 44 2,500 16 4 20 43 12 55 3,000 14 3 17 45 8 53 3,500 12 3 15 45 11 56 4,000 11 2 12 44 8 52 4,500 10 2 11 47 7 54 5,000 18 4 23 99 24 123 6,000 15 2 17 95 10 105 7,000 11 1 12 81 10 90 8,000 15 3 19 136 27 163 10,000 9 2 11 98 17 115 12,000 11 1 13 151 19 171 15,000 8 1 9 133 16 148 20,000 9 1 10 290 31 321 All ranges 255 51 305 1,400 225 1,630 Source: Survey of Personal Incomes 1982–83. Note: Individual items may not sum to totals due to rounding. * Including cases with losses. The notes to part b of Table 2, and the general notes to Table 2, apply also to this table.
TABLE 7—INDIVIDUALS (INCOME TAX YEAR 1981–82)—RANGE OF TAXABLE PROFIT Taxable profit from agriculture and horticulture Husbands plus single people Wives All individuals Taxable profit (lower limit) Number of cases '000 Amount £m Number of cases '000 Amount £m Number Amount of cases '000 Amount £m *Nil 34 21- 4 1- 38 22- 1 36 17 9 5 45 22 1,000 19 24 5 6 24 30 1,500 21 36 8 13 29 50 2,000 29 64 5 11 34 75 2,500 18 48 4 10 21 57 3,000 13 41 2 8 15 49 3,500 10 35 2 9 12 44 4,000 11 48 2 10 14 58 4,500 6 30 2 9 8 39 5,000 12 65 2 11 14 76 6,000 8 52 1 6 9 57 7,000 6 44 1 7 7 51 8,000 9 79 2 16 11 95 10,000 5 55 1 7 6 62 12,000 5 67 1 9 6 76 15,000 5 79 0 9 5 88 20,000 3 92 1 17 4 108 All ranges 250 856 51 161 301 1,020 * Including cases with losses Source: Survey of Personal Income 1981–82.
Notes:
Individual items may not sum to total due to rounding.
The general notes to Table 2 and the note to part b. of Table 2 apply also to this table.
The corresponding table is not available for years prior to 1981–82.
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TABLE 8—INDIVIDUALS (INCOME TAX YEAR 1981–82)—RANGE OF TAXABLE PROFIT Taxable profit from agriculture and horticulture Husbands plus single people Wives All individuals Taxable profit (lower limit) Number of cases '000 Amount £m Number of cases '000 Amount £m Number Amount of cases '000 Amount £m *Nil 31 12- 3 5- 35 17- 1 32 15 8 4 40 19 1,000 21 26 5 6 26 32 1,500 17 29 7 13 24 41 2,000 23 51 5 12 28 62 2,500 18 48 3 8 21 56 3,000 15 49 3 10 19 59 3,500 14 53 3 10 17 63 4,000 11 48 2 7 13 55 4,500 8 40 1 5 9 45 5,000 15 82 2 13 17 95 6,000 12 78 2 12 14 90 7,000 8 59 1 7 9 66 8,000 9 78 1 8 10 86 10,000 5 56 1 8 6 64 12,000 7 90 1 14 8 104 15,000 4 62 0 7 4 70 20,000 4 127 0 13 5 140 All ranges 255 977 51 154 305 1,130 * Including cases with losses. Source: Survey of personal Income 1982–83.
Notes:
Individual items may not sum to total due to rounding.
The general notes to Table 2 and the note to part b. of Table 2 apply also to this table.