Farmers and landowners are currently being bombarded with ideas of how they can manage their land differently to produce environmental benefit. For farmers who have been brought up to believe that their role was to produce food, this is not an easy transition. Here I look at the possible tax consequences from signing up to these schemes…
Despite widespread speculation on likely changes to Capital Gains Tax (CGT) and Inheritance Tax (IHT) the Chancellor refrained from any reform of these taxes in 2021. What does this mean for farm businesses?
Earlier this year, DEFRA announced it was planning to introduce a lump sum retirement scheme for farmers in England, which was due to open for applications next spring. More detail on the scheme rules was to be published by Autumn 2021 but we are still waiting for anything further causing frustration for those considering retirement.
As we rapidly approach the end of another year, it is customary to assess how a business has performed. This enables action to be taken before the accounting year-end to mitigate the tax bill, so there are no nasty surprises at a later date - and this year there have been more fluctuations than normal, making predictions particularly difficult.
Farmers, politicians and industry experts gathered on November 3 to hear from a line-up of several speakers. They discussed the future of farming and the challenges posed by the Government’s plans for agricultural transition away from EU-based rules and the Basic Payment Scheme, in tandem with the ambitious target to be Net Zero by 2050.
Agricultural Accountants, Armstrong Watson, is warning that farming businesses could see significant changes to the way they are taxed and may face higher tax bills than expected if a proposed reform is implemented.