24th March 2015
The Budget 2015- Amendment to Income Tax rules for farmers
It was announced last week that the Government plans to extend the period over which farmers can average their profits for income tax purposes. From April 2016, farmers will be able to average their profits over 5 years, as opposed to the current 2 years.
In theory, this means that if a farmer has a good year followed by several bad years, he will be able to average out the profits from the preceding 5 years and pay tax on the average profits thereby avoiding a larger tax bill during a “bad” year.
This will give farmers is the ability to manage the volatility within the farming market and focus on investment without having to worry about a large income tax bill unexpectedly landing on them.
This promise comes following lobbying from the NFU and is part of the Government’s ‘Making Tax Easier’ initiative.
For more information please contact Stephanie Dennis on 01604 233233 or click here to email Stephanie.
For more information on our agricultural services click here.