As we stand today, the planting of woodlands either on a commercial basis or for the greater good of the planet does not feel like it will generate a financial return for at least many years to come. However, the possibility of significant tax exemptions and synergies with the farm could make a woodland venture a credible opportunity worth considering in the farm’s overall future plan.
In this year’s Outlook, our rural specialists share their insight to help inform your decisions for the future, as well as giving their top tax planning tips, discuss commerciality and diversification, Making Tax Digital, and much more.
As Brexit draws closer, there is much uncertainty across the rural and agriculture sector, making it difficult to plan ahead. In this year’s Outlook, our rural specialists share their insight to help inform your decisions for the future, as well as giving their top tax planning tips and much more.
This booklet provides our perspective, as accountants, on some of the issues facing the rural and agriculture sector for the 2017/18 fiscal year.
We act for a range of landed estates, farming, horticultural and rural businesses, advising them on a range of issues affecting their businesses whether it is trusts, VAT, mixed farming, diversification, treatment of expenditure on farm and other commercial buildings, rental portfolios or the use of companies.
This booklet provides our perspective, as accountants, on some of the issues facing the rural and agriculture sector for the 2016/17 fiscal year.
A family farming partnership, spanning two parents and their son, wanted to take action to avoid paying 40% tax. The introduction of a new partner meant that their earnings would be split across four partners instead of three, reducing the income levels for everybody, bringing them all below the 40% tax threshold.
A large and successful farming partnership client had worked hard to increase profitability, but would soon push themselves into the, then, newly introduced 50% personal tax bracket. Our agriculture specialists proposed a structural change in order to keep earnings away from that harsh 50% tax level and as a result saved a huge 30% in taxes.
In this case, a client in our Royston office was delighted to discover that two recent court cases lost by HM Revenue & Customs (HMRC) created a big opportunity for them. Our agriculture specialists advised the client to take advantage of the resulting ruling from these cases, and their taxable profit figures were adjusted accordingly saving them £6,200.
When it comes to minimising your taxes, there is often more than one way that a transaction can be undertaken. In this case, a complex trust arrangement meant that a successful large farming company needed to divide up its assets and realise some cash. By enlisting our help, £313,000 in tax was saved.