Clwyd West MP, David Jones, today raised on the floor of the House of Commons the question of the tax treatment of former members of the failed Dairy Farmers of Britain (DFB) co-operative.
Speaking at DEFRA questions, David Jones said:
“This week’s select committee report on the failure of Dairy Farmers of Britain expressed regret that HM Revenue and Customs will not allow income tax relief to farmers who converted the debt owed to them by the co-operative into shares.
“Will the Secretary of State join the Select Committee in urging HMRC to reconsider its position?”
The Secretary of State, Hilary Benn MP, indicated that the government was still considering the report of the select committee.
David Jones commented:
“Many farmers in North Wales have suffered significant financial losses as a result of the collapse of Dairy Farmers of Britain. In the circumstances, HMRC appear to be taking an over-technical approach to the issue and I would strongly urge them to look at the simple reality of the situation: DFB owed money to the farmers which was never paid and, as a consequence, the losses should be allowable against income tax.”
