22 May 2015 | Online since 2003



24 March 2014|Finance,News

Doubling of investment allowance good news for farmers


The Chancellor’s announcement to double the rate of the Annual Investment Allowance (AIA) is welcome news for agriculture, according to agricultural accountants The Fish Partnership.

George Osborne announced in his Budget that the AIA, which allows businesses to invest in new plant and machinery for tax benefits, would double from £250,000 to £500,000 until the end of 2015.

The Tory-led coalition initially cut the AIA from £100,000 to £25,000, before it was increased to £250,000 in 2012.


AIA is a kind of capital allowance, which offers tax relief at 100 per cent on qualifying expenditure in year of purchase.

Farmers and agricultural businesses can now deduct up £500,000 from taxable profits. This pro-rates for short or long term periods, and also for periods that span the operative dates and rates.

Paul Laird, partner at High Wycombe-based The Fish Partnership, said: “With the £250,000 AIA allowance due to end in December, doubling of the allowance to £500,000 until the end of 2015 is welcome news for farmers.

“This should give farmers the confidence to invest in new plant and machinery, knowing that they will receive 100 per cent tax relief.

“While we would have liked the move to been made permanent, any good news should be welcomed.

“If farmers are considering making capital investments in plant and machinery, we would urge them to contact a specialist agricultural accountant to see how they can fully benefit from the announcement.”

The announcement is likely to cost the Government in the region of £2 billion, and according to the Chancellor, some 99.8 per cent of businesses will pay no tax on investment.

Other measures announced in the Budget that will be welcomed by farmers include £150 million for flood defences, and an extension to apprenticeship grants.

Download




Comments


No comments posted yet. Be the first to post a comment

To post comment without approval login or register

Display name

Please enter your name

Email (optional)
Comment

Please enter your comment

Post Comment

Your comment submitted successfully.Please wait for admin approval.

Some error on your process.Please try one more time.



Jobs


12 May 2015
Agriculture Lecturers / Course Managers
Agriculture Lecturers / Course Managers. £20,151 - £25,203 per annum which is Points L4b – L9c on the Lecturers’ Salary Scale...

8 May 2015
Central Scheduler
Experienced in scheduling and managing a dairy system. Using a dairy system to manage the appointment times and dates Inputti...

16 May 2015
DEF/199/15 - Senior Veterinary Inspector - Itchen Abbas and Horley - Fixed Term Appointment for up to 3 years with a view to permanency
? To investigate animal diseases in farm livestock by undertaking on-farm and field investigations by:. ? To carry out euthan...

18 May 2015
Director of Client Relationships
Our client is a long established full service marketing agency, predominantly B to B in sectors such as Financial Services, A...

6 May 2015
Stud Hand
Deerfield Farm, in Dullingham, requires a Stud Hand for immediate start. Stud Hand Required....



Top stories you may have missed
15 May 2015 | Arable

Scotland’s Rural Affairs Secretary Richard Lochhead is calling on the Europ...


15 May 2015 | Finance

As the country settles down following the turmoil of the general election, ...


14 May 2015 | Animal Health

New research from the Universities of Bristol and Cambridge has found that ...


13 May 2015 | Animal Health

A new publication to help farmers prevent sheep lameness and offer advice o...


12 May 2015 | Agri Safety

The Farmers’ Union of Wales is putting the spotlight on Liver fluke at next...


5 May 2015 | News

The UK is now third in the global rankings for utility-scale solar energy a...


29 April 2015 | Agri Safety

A recent Rural Watch demonstration and information event gave Farmers’ Unio...


24 April 2015 | Meat Processing

Retailers should confirm their commitments to sourcing UK lamb this season,...


15 April 2015 | Meat Processing

A leading retailer has apologised after selling imported lamb in a Borders ...


9 April 2015 | Finance

The time has come for landlords to expect to see reductions in farm rents, ...