25 April 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


4 April 2015
Farm Business Consultant
Our client is currently seeking an experienced Farm Business Consultant to establish a Farm Business Consultancy department t...

7 April 2015
Domestic Surveyor
39b Village Farm Ind Estate, Pyle, Bridgend, CF33 6BJ. We are looking for a surveyor based in the Pyle, Bridgend area of the ...

20 April 2015
Cold Store Operative
Any other dairy duties. “Medina Dairy - a successful and progressive, family-run, business. Medina Dairy operates across 14 d...

24 April 2015
Service Apprentice
An understanding of agricultural machinery and its application in agriculture. We are currently recruiting a Service Apprenti...

24 April 2015
Human Resources Coordinator
Palethorpes business produces chilled savoury rolls, savoury hot pies, pasties and slices. The business has been producing pr...



Top stories you may have missed
10 April 2015 | Agri Safety

The permanent eradication of Bovine Viral Diarrhoea [BVD] in Scottish cattl...


10 April 2015 | Dairy

The abolition of milk quotas in Europe on 1st April has resulted in a numbe...


10 April 2015 | Cattle

The top 14 milk producing countries in Europe will increase their productio...


10 April 2015 | News

Matt Ware is the NFU's head of government and parliamentary affairs, based ...


10 April 2015 | Arable

There is a 'desperate need' to improve farmgate returns given low incomes a...


9 April 2015 | Arable

Rapid stem extension, after a slow start to spring, is likely to create spl...


9 April 2015 | Finance

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


8 April 2015 | Cattle

Cogent’s reputation as a source of the highest calibre sires has been enhan...


8 April 2015 | Arable

The spread of exotic and aggressive strains of a plant fungus is presenting...


7 April 2015 | Animal Health

The FSA’s new Food Crime Unit wants the industry to share information, some...