Autumn Statement 2015 – what it means for Agriculture
Posted On November 25, 2015 By mhauk
David Missen, Head of our Agriculture Sector, shares his thoughts on today’s Autumn Statement:
“The Chancellor’s statement on the acceleration of Capital Gains Tax (CGT) payments on the sale of residential property is likely to cause some significant problems across the farming industry. CGT is not calculated like income tax – it is often necessary to go back over 30 years to find base costs and improvement expenditure, and the tax payable will also vary depending on other transactions which may take place later in the year. This looks like something which will slow down transactions and cause considerable friction between buyer and seller.
The news that most self-employed people will be required to update HMRC quarterly on their tax affairs (which presumably means quarterly accounts) from 2016, is not likely to be well received by the farming community. This presupposes that everyone has working broadband – and more realistically it means that what used to be an annual visit to the accountant might become something a bit more regular. No doubt it will be a money saver for the government, but an additional level of administration and cost for the taxpayer. There will also be a consultation on aligning (which will mean accelerating) tax payment dates to bring them closer to when profits arise. Again this seems unlikely to help cut bureaucracy in the farm office”.
If you would like to discuss this issue in more detail or you would like to speak with a member of our team, please contact Hannah Farmborough or call on 0207 429 4147 to be put in contact with your local representative.