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:

  1. 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).
  2.  A Pension review and the possible use of a SIPP.
  3.   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