§ Dr. David ClarkTo ask the Chancellor of the Exchequer if he will list all the exemptions available from taxation for the agricultural industry; and if he will make a statement.
§ Mr. Maude[holding answer 6 November 1991]: The following reliefs and allowances are available to the agricultural industry:
The same general rules apply to the calculation of a farmer's business profits as apply to other traders. But in addition, a farmer may claim to average his business profits over two consecutive years of assessment where the difference between them is 30 per cent. or more.The Agricultural Buildings Allowance gives relief for capital expenditure on agricultural buildings and structures at a rate of 4 per cent. per annum straight-line.For inheritance tax provided certain conditions are met, agricultural property relief is available at two rates. The relief operates by reducing the value of the property bought into charge by 50 per cent. for land with vacant possession and 30 per cent. for let land.Working farmers can qualify for capital gains tax reliefs in the same way as other traders. These include rollover relief, retirement relief, and holdover relief on gifts of business assets or shares in unquoted trading companies. Holdover relief is also available on gifts of agricultural property which would attract 50 or 30 per cent. relief from inheritance tax.