Autumn Statement: Implications for Agriculture

Posted On December 4, 2014 By mhauk

While there was relatively little of direct interest to farm businesses in the 2014 Autumn statement, the following minor changes may be of interest to those in the agriculture sector:

  • The ATED charge on enveloped dwellings will rise by 50% over the rate of inflation for 2015/16.
  • There had been suggestions that a single settlement IHT nil rate band would be introduced. This will not now happen, although consultations on trust IHT will continue.
  • Restrictions will be introduced on the tax reliefs for both parties where goodwill is sold to a controlled company.
  • The proposed improvements to small business rate relief and discount may help those with farm shops and  small commercial properties.
  • Research and development tax credit rates are to be increase
  • Major changes to the scales and rates of Stamp Duty Land Tax will be introduced. It should be noted that these will apply to residential property only: commercial buildings and farmland will continue to attract tax on the old rates and bands.

The CLA has also highlighted an additional point of interest to those involved in agriculture:

Flood Defences

The Chancellor has announced how the £2.3billion allocated to investment in flood defences over 6 years will be spent on projects around the country. For details of this see here

The Chancellor also announced that from 1 January 2015 business contributions to Flood and Coastal Erosion Risk Management (FCERM) projects will be eligible for tax relief offset against either Corporation or Income Tax.

What this means for you: If you decide to invest in a FCERM project on your land you will be able to offset the cost in your tax return

If you would like to discuss the needs of your agriculture business in the light of the changes please contact us.