Taxation of Agriculture

– in the House of Commons on 25th April 1944.

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In the case of agriculture, the farmer commonly does not, while the ordinary industrialist generally does, provide the whole of the capital required for the business; for in the case of the tenant farmer, part of the capital is provided by the landowner in the form of farm buildings, farm cottages and so on. It occasionally happens in ordinary industry that new factories are built and let to traders, in which case they will rank for relief to the landlord, in the same way as if they were built by the trader. In agriculture, it is the rule rather than the exception for the landlord to provide the buildings. There is a co-partnership between the owner and the farmer, and expenditure on the developmwt of the agricultural industry is borne by the two partners. So far as the farmer bears the expenditure, he will get precisely the same relief as the ordinary industrialist. So far as the landowner does so, he will qualify for similar relief against not only the income drawn from the land, but against any other income liable to tax.