§ Mr. Austin MitchellTo ask the Chancellor of the Exchequer if he will give his estimate of what will be recouped by way of capital taxation from the money provided for decommissioning; what information he is providing to fishing vessel owners about their capital gains tax liabilities; and if such information will be made available to owners before they apply for grants.
§ Mr. DorrellDecommissioning grants are taxable in the same way as other grants to the agriculture and fishing industries. But I regret that a reliable estimate of the tax involved could be produced only at disproportionate cost.
The Inland Revenue issues no general guidance to fishing vessel owners about the capital gains tax liabilities arising from their receipt of decommissioning grants. MAFF, which is responsible for administering this grant, does issue a general explanatory leaflet to all who apply for the decommissioning grant pointing out that the grant will be taxable. Vessel owners should contact their own tax office or financial adviser for detailed advice.