Farmers and landowners who lose land under a Compulsory Purchase Order for a new road scheme have many things to consider, including Capital Gains Tax, and legal or valuation issues.
Trusts have become something of a political football in recent years and their use is often called into question with the implication that by putting a trust in place, the motives for doing so, are driven by tax avoidance and the wish to be not transparent about the ownership of the assets.
Lakeland Lamb is the product of a fifth-generation farming family. At the heart of their business is the breeding and rearing of premium lamb from Herdwick Sheep and cross-bred Herdwick-Continental breeds, which they supply to Booths meat counters.
The shortage of affordable properties in many rural areas, means more farming businesses are looking at building new properties or converting buildings to provide accommodation for family members or workers. But what about the VAT issues that can arise?
With the reduction in BPS payments now really starting to be seen, almost all farming businesses are trying to work out how they can look to fill this void.
When buying farm machinery on hire purchase, care needs to be taken with the timing. Once the asset is brought into use for the purposes of the trade, you are treated as having incurred all the capital expenditure even though you will be paying off the finance over several years.
Armstrong Watson's David Threlkeld joined the firm as a trainee accountant at the age of 20. Now an agricultural accounting partner working with a large portfolio of farming businesses, he looks back on his career spanning almost three decades.
While there was little of real interest for farmers in the Spring Budget, there was a big announcement regarding tax relief known as “full expensing”, which will offer some businesses more tax relief when purchasing machinery and equipment.
To replace the super deduction tax relief, companies will be able to claim 100% relief on qualifying capital expenditure, such as IT equipment and plant and machinery, without any cap for the next 3 years.