Ploughing-Up Subsidy (Income Tax).

Oral Answers to Questions — National Finance. – in the House of Commons on 2nd July 1942.

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Photo of Mr Morgan Price Mr Morgan Price , Forest of Dean

asked the Chancellor of the Exchequer whether the £2 an acre ploughing subsidy is to be regarded as revenue liable to Income Tax or as capital and, therefore, an item which is not brought into trading accounts?

Photo of Sir Kingsley Wood Sir Kingsley Wood , Woolwich West

In the view of the Board of Inland Revenue the payment referred to is of a revenue nature and should be taken into account in computing profits for taxation purposes.

Photo of Mr Morgan Price Mr Morgan Price , Forest of Dean

Is it not a fact that a court case is pending on this matter, and will the Chancellor's present view be modified in view of the decision which has been taken in that case?

Photo of Sir Kingsley Wood Sir Kingsley Wood , Woolwich West

No, Sir. There has been a decision taken by the Special Commissioners of Income Tax on the matter, but the Board propose to maintain their view, and, if necessary, to seek a ruling from the courts if the decision is opposed.

Photo of Sir Herbert Butcher Sir Herbert Butcher , Holland with Boston

Does my right hon. Friend realise that farmers have not the means to contest a decision of the Special Board, whereas the Inland Revenue have the whole resources of the State at their command?