We are delighted that lobbying on the proposed extension of Farmers’ Averaging Elections from 2 years to 5 years has paid dividends. It was announced in the budget that farmers will have the option of either 2 year or 5 year averaging.
We were very worried that the initial proposal to only allow 5 year averaging would have made the system almost unworkable and rarely useful.
The system of 2 years Averaging Elections saves our Farming clients around £100,000 in tax every year so this would have been a big loss particularly in these difficult times.
Please note: This article is a commentary on general principles and should not be interpreted as advice for your specific situation.
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