Agriculture current issues

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Our experts are aware of current developments for the agriculture sector and through our proactive approach, we inform our clients of any issues that may affect them.

Recent years have seen a steady period of growth and profitability in the arable sector principally due to a sustained period of high prices and the ability of farmers to achieve cost and efficiency savings in their operations. However, the agricultural market is a fickle one where the price of crops can change significantly due to a multitude of factors beyond the control of the farmer. Increasingly these factors are of a global nature.

Tax opportunities for UK farmers
Are there tax opportunities for UK farmers available in 2016? Annual Investment Allowance, Agricultural Property Relief, farmers’ averaging and falling corporation tax rates bring big tax opportunities for UK farmers and owners of agricultural businesses. However, each have some detailed rules that you need to be aware of – particularly as UK farming brings unique tax reliefs and rules.

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Sustainability and diversification
In recent years, in conjunction with volatile milk prices and other cost pressures, many rural and agricultural businesses have looked to diversify their offering. As well as their core business operations, farmers are also hosting fishing and clay pigeon shooting events and adding value through selling ice creams, snacks and accommodation, for example.  Many farmers see this adaptation as fundamental to the profitability and viability of the farm. However, farm diversification is not guaranteed to boost your farming business and can be a complex process. As farming often brings unique tax reliefs and rules, there are potential tax consequences that need to be considered when using land for alternative activities. If you are contemplating diversifying your farm it is advised that you seek sound and proactive tax planning advice.

For more information please get in touch.

New farmers' averaging rules
The government has now confirmed that the current two year averaging period will not be replaced (as was speculated) but it will be added to. From 6 April 2016 farmers will now have the option to elect for either a two year or a five year averaging period. This extension to the current farmers’ averaging rules (from April 2016) – rather than a replacement – will bring even greater flexibility to farmers and will help them better manage potential fluctuations in income.

For more information please get in touch.

Brexit
On 23rd June 2016 the UK voted to leave the European Union. From the argument over selling bendy bananas to the threat of an emergency Budget, the EU referendum campaign has undoubtedly had its share of the headlines over the past couple of months. The biggest headline now though is of course that the UK has voted to leave the EU.

For more information please get in touch.

Succession planning
Succession is widely held as one of the central management issues in the agriculture sector. In our experience, transition plans are rarely in place, and where they are, they are often overly ambitious. Whether you’re thinking of passing on the business to the next generation or selling the business to a third party, succession only really succeeds optimally when it is prepared for, so that a clear path and direction can be followed.

For more information please get in touch.

Contact us for a free initial meeting

To find out more about how one of the leading firms of accountants in Sheffield, Doncaster and Northampton can help you, please contact one of our specialists. We believe in long-term client relationships and understand the importance of meeting to establish that you like us and we like you. This is why we offer all new clients a free initial meeting which will enable you to have a discussion about you and your business issues.

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