“STANDARD VALUES” OF STOCK

Press, Volume LXXXII, Issue 24905, 19 June 1946, Page 9

“STANDARD VALUES” OF STOCK

FARMERS MAY OBTAIN INCREASE Farmers who were farming before they became liable for income tax have the right to appeal before the end of this month for an adjustment in the standard values of their stock. Only certain classes of farmers are affected by the legislation, which was passed at the end of last year, but as the last date for the readjustment is the end of this month, farmers who may be affected would do well to Consult their accountants, because the pro-, cedure is not as sitnple as it looks, and such action now may result in considerable savings to individual farmthe legislation gives certain farmers the right to increase the standard values of their livestock without any immediate effect on income, and Social and national security fazes. The date by which farmers must apply fbr relief Was fixed at June 30, 1946. There is ohly a short time ,ieft before the expiry of this concession and so any farmer who considers that he has a case for adjustment of his standard values should obtain immediate advice in order that he may obtain the maximum benefit. The advantage of this legislation is that, it enables farmers affected to increase a low standard value to. a figure which is a more stable one, taking good and'bad years into account: for example, £1 to 25 s a head for-sheep, and. say. £6 to £8 for dairy and beef C& Before the passing of this legislation a farmer who disposed of the whole of his stock or who died, was taxed on the “paper profit” over and above the normal working profit realised up to the date of sale or death. The legislation assists the farmer in reducing the profit to the actual working profit. and therefore is of importance, particularly if the sale or disposal of the stock takes piece in a year when stock values are high, as they are at preThe unimproved value of the land farmed is important, as on that value farmers became liable to income tax. The following table sets out the date of the commencement of the liability for income tax:—

There are many other small nplnts which are of importance before the Commissioner of Taxes will grant relief, but the most important point is the date fixed. Any application must be lodged on or before that date.

Unimproved value of land _ £14.000 or over £ 7,500 and under .. .. £14,000 .. 1/4/1929 £5.000 and under £7,500 1/4/1931 Others regardless of unimproved . values