Farmers, even hobby farmers, are noticing an increase in their profits as a result of higher prices. Whilst the bank manager may be pleased, increased tax bills will not be welcome!
Tax planning is essential and may often include:
- Preparing a capital expenditure forecast for the next 2 years. (Please note the Annual Investment Allowance reduces to £25,000 from 5 April 2012 so time is running out).
- A Pension review and the possible use of a SIPP.
- Ensuring any tax reliefs are maximised eg:
- To take advantage of farmers averaging.
- To remove non-farming family members from ownership of land to qualify for Entrepreneurs’ Relief.
- To keep old redundant barns in use by the farming business to maintain Agricultural Property Relief.
It is important to have a good relationship with your professional tax adviser to review your individual circumstances.
For further information about our services please contact:
Jonathan Crowther FCA
Pershore 01386 552644 or Ledbury 01531 631500