Whilst many businesses in the agriculture sector retain their core farming aspects, be they arable or livestock, many have also moved into other non- farming ventures such as equine, holiday lets, corporate hospitality days or leisure related activities. These aspects have numerous business and tax implications.
We have experience of acting for many agricultural clients throughout the UK. Our specialist team can advise on the key issues affecting owners, their businesses and families. As well as dealing with all of your annual accounting and taxation requirements, we also help families with long-term planning and succession issues. Some of these key aspects are illustrated in our succession planning video.
There are many sector specific taxation rules and regulations that affect agricultural businesses. Our team are well placed to deal with these on your behalf, as well as provide sound commercial advice.
The structures used to conduct business will impact on the capital taxes position of the owner. To reduce the impact following a death or the sale of property, it is important to know what reliefs are available to you, which ones you are eligible for and, importantly, those that you could claim. Our team will ensure you are in the most beneficial tax position.
Areas where we regularly help include:
- The specialist areas of inheritance tax, agricultural and business property relief
- Capital gains tax planning, including entrepreneurs’ relief claims (10% effective tax rate)
- Tax efficient structures for businesses, including diversification projects
Using the correct structure will always help but there are more industry specific issues to address that affect your annual tax liabilities. Through working in the sector we have expert knowledge of these, which we use for our clients’ benefit to reduce their tax burden. These areas include:
- Equipment purchases including timing of acquisitions to maximise relief (more information on this is explained in our Annual Investment Allowance video)
- Tax related issues concerning farmhouses and their running costs
- Livestock ‘herd basis’ tax elections and tax efficient stock valuations
- VAT advice, including advice on VAT partial exemption
- Advising on employee accommodation issues
Whilst tax is important, it should not be the overriding factor. Commercial considerations are vital if your venture is to be successful. A well thought out and documented business plan not only helps you to consider your investment of time and funds in your business venture, it will also be essential if you need to borrow from the bank. We will use our business planning knowledge and cash flow forecasting models to assist you with formulating your plans, ensuring they are robust and that they can sustain fluctuations in both income and costs.
We have a strong understanding of the sector. Our people have a focus on regular industry training, specifically for farm businesses leading to cost efficiencies and a better service for you.
We have an excellent network of contacts that could be of use in helping you run your business as efficiently as possible to achieve your business aims. We contribute to leading organisations that represent the interests of farming businesses including the Country Land and Business Association (CLA) and Scottish Land & Estates (SL&E). This gives us an inside track on the development and implementation of forthcoming legislation.
Many of these issues are discussed in our regular publications: Rural Business and Landed Estates Annual Review. You can stay informed by subscribing to receive these updates.
For more information on how we can help you or your business, please contact one of our experts.