TMMF Ltd
Farminguk
01 June 2016 | Online since 2003
OvoConcept


17 April 2014 02:18:00|

Farmers urged to take advantage of increased investment allowance


Farmers are being urged to take advantage of the increased rate of Annual Investment Allowance (AIA), which allows businesses to invest in new plant and machinery with tax relief.
Chancellor George Osborne announced in his Budget in March that the AIA would double from £250,000 to £500,000 until the end of 2015.
The AIA was initially cut by the Tory-led coalition in 2010 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 the year of purchase.
Farmers and agricultural businesses can now deduct up £500,000 from taxable profits.
This is available on a pro-rata basis for short or long-term periods, as well as periods which span the operative dates and rates.
Chris Wright, a partner at specialist agricultural accountants Moore Thompson, which has offices in Spalding, Wisbech and Market Deeping, said: “The increase in the Annual Investment Allowance is extremely good news for the agriculture sector, giving farmers and growers the confidence to invest in new machinery such as tractors or combines, or make improvements to buildings such as heating and water systems.
“It is important when planning capital expenditure that the purchase is timed in order to maximise capital allowances available. There are different rules in respect of outright purchases and those acquired under hire purchase agreements and care needs to be taken.
“We would urge farmers to consider utilising the improved allowance to invest in their businesses, and consult 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





0 Comment


loginuserlogo
Name

Please enter your name


Email

Comment

Please enter your comment


Post Comment

Your comment submitted successfully.Please wait for admin approval.


Comments

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


Australia | 31 May 2016
Dairy loans might be hard to access, but will help farmers face some hard truths

Low-interest loans may be difficult to access, but will also help people face some difficult truths, a rural accountant says. There's bipartisan political support for concessional loans, which form...


USA | 31 May 2016
Farmers get creative, frugal to stay afloat in tough times

After several boom years while the rest of the economy struggled, farming is entering its third straight year on the bust side of the cycle. Prices for corn and soybeans are low while expenses like se...


Australia | 31 May 2016
Exciting futures in agriculture veiled by dated agriculture stereotypes

There are six figure salaries on offer, and the chance for a fulfilling career producing food and fibre, but persistent and dated stereotypes of agricultural careers mean they're not often the first c...


Australia | 31 May 2016
Cattle worth $8,000 shot dead in northern NSW

Police are appealing for public help after four cattle were shot dead on two separate properties at Cangai, west of Grafton in northern New South Wales. Police believe the two cows and two bullocks...


Ireland | 31 May 2016
Dairy farmers to earn less than industrial wage in 2016

Farmers can't be blamed for the dairy income slump the ICMSA has warned, as it emerged the average dairy farmer is likely to work for less than the average industrial wage this year. Agriculture Co...



Trending Now

Viewed
Discussed

Farms and Land for sale

PropertyLocation
PropertyAgent
PropertyMinimumPrice
PropertyMaximumPrice
PropertyCategory

Holiday Rentals search

AccommodationKeyword
AccommodationType
AccommodationCounty
AccommodationStarRating


Top stories you may have missed
closeicon
Username
Password