andMr. P. Barry asked the Minister for Finance if he will outline the method of computation of the £33 million in income tax estimated to be collected from the farming community in 1980, if this figure includes (a) only the tax paid by fulltime farmers, (b) the tax paid by people in other trades or professions in respect of their farms, (c) the tax paid by people on PAYE in respect of the income derived from their farms, and if it does not include the figure for (b) and (c) above, the amount collected under these headings.
Written Answers. - Farmer Taxation.
174.
The yield of £33 million for 1980 is computed as follows:
|
Full-time farmers |
£million |
|
(i) Receipts from 1979-80 assessments (Tax on these assessments is payable in one sum on 1 January 1980) |
14 |
|
(ii) Receipts from the first instalment of assessments for 1980-81 (Tax on these assessments is payable in two instalments, the first on 1 October 1980 and the second on 1 January 1981) |
10 |
|
Farmers carrying on another trade or profession (Tax on farming profits) |
|
|
(iii) Receipts from the second instalment of 1979-80 assessments (payable on 1 January 1980) |
3 |
|
(iv) Receipts from 1980-81 assessments (payable in one sum on 1 October 1980) |
6 |
|
33 |
In regard to (c) of the question, presumably what is in mind is the tax payable as a result of the provisions of section 28, Finance Act, 1974, which restrict personal reliefs where a farmer has non-farm income and his farming profits are exempt from tax—the rateable valuation of the farm being over £20 but under the threshold for liability to tax on farming profits. This restriction applies in connection with the tax charge on the non-farming income. It is estimated that the additional yield arising from this measure will be of the order of £¾ million in 1980.