Rural Business – October 2021

14 Oct 2021

autumn leaves

In our October issue of Rural Business, we explore the following insights:

Farmers’ profit averaging and the herd basis

With 2021 harvest yields holding up well as the harvest season closes, thoughts turn to farm profitability and meeting the resulting tax liabilities. We explore farmers’ profit averaging and the herd basis, highlighting how they both work and what factors should be taken on board. Read more.

AHA and FBTs – when to consider a surrender and regrant arrangement

We have recently seen several of our clients change their tenancy arrangements where land is let to tenant farmers. In particular where ’old-style’ Agricultural Holdings Act tenancies (AHAs) are surrendered in exchange for the grant of Farm Business Tenancies (FBTs). Our article explores the key considerations in such cases. Read more.

Storage facilities and VAT

The application of the VAT exemption to land and property transactions is complicated. HM Revenue & Customs has an ongoing consultation aimed at simplifying the exemption. We consider this exemption from the view of farmers with excess real estate, who may let out spare storage space. What are the implications of this type of activity on a farmer’s VAT liability? Read more.

I hope that you find this issue interesting and informative. Should you wish to discuss any of the issues raised here, please contact me or your usual Saffery Champness partner.

David Chismon, Editor

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