Farms and Rural Business

Alison Smith discusses the most recent announcement about the transition towards Making Tax Digital (MTD) and the likely additional complications (and extra tax charges) on the horizon for many farming businesses.

The November 2021 report from the Office of Tax Simplification (OTS) on Capital Gains Tax (CGT) looks at areas where the tax could be made simpler, fairer and easier to understand and where specific anomalies could be removed.

In May 2021, the Government published a consultation document on the design of execution of the lump sum exit scheme, which would enable eligible retirees from the farming industry to take some of their remaining subsidy payments by way of a single lump sum in 2022. 

In April 2019, the Government has taken the opportunity of incorporating some (but by no means all) of the recommended reforms into Schedule 3 of the Agriculture Bill. What does this mean for the farming industry?

It’s a question I’m sure many farmers ask themselves at some point … should I consider doing something different? If you love farming then I’m sure the answer is a quick and confident no, but should it be?

There are many sayings about managing cash in a business – “cash is king” and “turnover is vanity; profit is sanity; cash is reality” to name but two. With many farms and rural businesses diversifying, how can you be sure which part of the business is contributing to the cash inflow?