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
There has always been uncertainty over whether a landowner is a farmer or a landlord for tax purposes. There has however, been a recent useful decision by the First Tier Tribunal in the case of John Carlisle Allen which has helped to clarify the capital gains tax position (and the valuable entrepreneurs relief/rollover relief ) … Continue reading Are you a farmer or a landlord?
Most land owners are aware of Agricultural Property Relief (APR) and could be forgiven for thinking that this means there is no risk of their Estate paying Inheritance Tax. Unfortunately there are situations where farmland does not qualify for 100% APR. There have been cases where the HM Revenue & Customs have successfully challenged claims … Continue reading Estate Planning and Farmland
The Royal Institute of Chartered Surveyors (RICS) has recently announced that the price of Welsh farmland has increased by around 13% in the last 12 months. Although Welsh land is not as expensive as that of our English neighbours, the cost of an acre of Welsh farmland averaged out at £7,500 for 2014. A spokesman … Continue reading Thinking of Selling Your Welsh Land?
When carrying out extensive repairs to maintain their premises a farmer may assume that, without question, these repairs will be offset against the business income received thus reducing the tax bill for the applicable accounting period. HM Revenue and Customs however, may adopt an entirely different view. Repairs are tax deductible and can be claimed … Continue reading Are Your Farm Repairs Tax Deductible?
With the increase in land prices, grazing agreements have become important for any landowner wishing to ensure that he retains valuable tax reliefs both for capital gains tax and agricultural property relief, including the farmhouse. To secure these capital gains tax and inheritance tax advantages, the land owner must be able to demonstrate that the … Continue reading Do You Wish To Secure Valuable Tax Reliefs On Grazing Land?
If so, are you sure you will be able to claim all available business reliefs?For farmers, entrepreneurs' relief, which effectively reduces capital gains tax to 10%, may be more useful than the alternative rollover relief. Anyone considering a sale of development land should plan carefully for that sale in order to ensure that entrepreneurs' relief will … Continue reading Are You Planning To Sell Development Land?
No matter what type of business you run, you will have assets. Farm businesses may have stock, land, crops, machinery, a farmhouse. It is prudent to insure these assets to be confident that you that you are fully covered in the event of an unfortunate incident. Given the amount of assets anyone may insure and … Continue reading Accounting For Insurance Payouts
There are a number of issues which make farming businesses different from other organisations as far as accountancy and tax planning advice is concerned. Farming businesses tend to be more capital intensive and the return tends to be lower than with other businesses. This is usually even more extreme if the farm is owned as well … Continue reading The Business of Farming