Tories pledge farm tax review

THE CONSERVATIVES have pledged to review the tax treatment of farm co-ops if they get into power.

Jim Paice, shadow secretary of state for agriculture and rural affairs, made the pledge as he addressed G‘s Growers, a horticulture co-op based in Ely, on Monday (Nov 8).

Mr Paice, MP for south east Cambridgeshire, said the Tories would review the tax treatment of farm co-operatives in a bid to encourage investment and boost farm profits.

“Different governments have provided different support systems to encourage co-operation but the one area where nothing has been done is to look at the tax system as it affects not just the co-operative but the shareholder too.

“As producers increasingly look to co-operate to add value by investing in processing, so the need to be able to build up a capital base is critical,” he said.

“We have therefore promised that we will review the tax treatment of co-operatives to enable and encourage investment and retained profits.”