In this year's budget, I announced a measure to allow deferment of capital gains tax — CGT — for farmers disposing of farmland, including buildings, to a local authority for road-building or road-widening purposes, to the extent that the proceeds of the disposal are reinvested in acquiring replacement farmland. In the recently published 1995 Finance Bill, I have broadened this relief to include reinvestment in agricultural plant and machinery.
These new measures apply in respect of disposals taking place on or after 6 April 1995, in line with the normal practice for changes in the CGT code. I understand that the majority of the disposals referred to by the Deputy would have taken place prior to 6 April 1995 and, therefore, would not come within the scope of the new provisions.