If you are planning on restructuring your family business, it’s likely you’ve considered the tax and VAT positions. It’s important however not to neglect Land Transaction Tax (LTT), or Stamp Duty Land Tax (SDLT) if in England. Often overlooked, LTT can arise when an interest in land is transferred. If you are a sole trader … Continue reading Land Transaction Tax on Business Restructure
Five-year averaging has the potential to offer farmers big tax savings, by reducing tax rates and allowing retrospective claiming of beneficial tax reliefs. From 2016-17, HMRC agreed farmers could, under certain circumstances, chose to average their profits over two or five-year periods for income tax purposes. Five year averaging has proved more beneficial than initially … Continue reading Feel the Benefits of Five-Year Averaging
The age old conundrum of whether an item is classed as “plant” for capital allowances, or whether the expenditure was on a building or structure can be difficult to resolve but with different allowances for each category, it is important to be sure expenditure is classed correctly. It all boils down to the “with which” … Continue reading Is a Grain Silo Plant?
Farmers across the UK are being urged to make sure they take full advantage of the new Annual Investment Allowance (AIA) of £1million which came into force on 1 January 2019 and will remain at that level for 2 years. AIA gives 100% tax relief on the cost of new plant and machinery in the … Continue reading Plan Ahead for New Machinery Purchases
In the Budget the Chancellor announced that there will be a new Structures and Buildings Allowance for the cost of new commercial buildings after 29 October 2019. The tax relief will be 2% of the cost per year for 50 years. Clearly 2% is a low % but it is a lot higher than the … Continue reading New Tax Relief on the Cost of New Farm Buildings
Reform of existing tax measures could be on the horizon for owners of land approved for development. A report published in September 2018 by the Housing, Communities and Local Government Committee suggested that the significant increase in the value of agricultural land when planning permission is granted for residential use should be reflected in more … Continue reading Higher Taxes on Development Land?
Many farm businesses diversify from traditional farming to other related activities such as livery or hay making for horses. This may be a result of lifestyle changes or perhaps other potential incentives aligned with the Government’s so called Green Brexit. In such circumstances, they need to be aware of the impact that such a change … Continue reading Preserve Tax Relief on Farming Diversification
The Welsh Government’s Finance Secretary, Mark Drakeford, has recently proposed a punitive tax on vacant land which is not used for building. There are few details currently available, but it appears that this tax is intended to target vacant development land held by developers or those who speculatively accumulate plots. However there is a risk … Continue reading New Vacant Land Tax Proposed by Welsh Government
A new Land Transaction Tax (LTT) will come into effect in Wales from 1st April 2018, replacing Stamp Duty Land Tax (SDLT). The move comes as part of a wider pattern of fiscal devolution which will see Wales bearing responsibility for raising part of its own tax revenue for the first time in nearly 800 … Continue reading New Welsh Land Transaction Tax
HM Revenue & Customs (HMRC) have moved to reassure some farmers that paper returns will still be accepted when Making VAT Digital comes into force in 2019. Under the new system, which commences 1 April 2019, businesses operating above the VAT threshold of £85,000 are required to keep digital records and submit VAT returns online. … Continue reading Making Tax Digital: Paper VAT Returns Will Still Be Accepted