14 April 2016

Extended tax averaging for farmers starts

A press release from the Department for Environment, Food & Rural Affairs, HM Treasury, The Rt Hon George Osborne MP and The Rt Hon Elizabeth Truss MP.

Under the new rules, initially announced in the 2015 Budget, farmers will be able to average their profits for Income Tax purposes from two years to five years. This will help farmers with fluctuating profits better manage risk and the impact of global volatility which has become an inherent feature of the agricultural industry.

“Managing risk at a time of severe price volatility is vital. By remaining in the EU we avoid years of complication and uncertainty and can help build greater resilience in the supply chain””Having a tax system that accommodates the realities faced by farmers in a way that is simple to understand and use will also give farmers a vital tool to thrive in the face of volatility.” – Environment Secretary Elizabeth Truss

“Today’s reforms will provide farmers with additional security to plan and invest for the future, allowing them to spread profits over a longer period of time. Over 29,000 farmers can benefit from the changes, saving an average of £950 a year.”

– Chancellor George Osborne

As well as having the new option to average tax over five years, farmers will also retain the choice to average profits over two years.

For the full story go to www.gov.uk