- Location
- Hammerwich
I got sent this by email from Gary Markham of Land Family Business and thought it was worth sharing here with a link to the full review:
Rishi Sunak’s first budget was dominated by a series of measures to support the UK economy following the Coronavrius outbreak, with tax changes taking somewhat of a backseat this time.
Our Budget Review is attached however we have outlined a couple of points of interest.
There had been rumours circulating that the red diesel rebate was going to be cut for all industries. It was good to hear that the concession is remaining for the time being for agricultural businesses and hopefully, the importance of this rebate to the farming industry has been recognised by the Government. Our benchmarking figures indicate that current fuel costs for farming business are around £20/acre (£60/ha) therefore this already represents a significant cost for farming businesses.
We were expecting changes to Entrepreneurs relief as it has been criticised as being ineffective and too costly to the Treasury. The relief has not been abolished, as had been feared however the lifetime limit for eligible gains has been reduced from £10 million to £1 million with effect from 11 March 2020. This will have an impact on those selling farms or land for development as the tax on a £10 million gain will increase from £1 million to £1.9 million. There will be a need for restructuring ahead of the sale and more reliance on rollover relief in future for farming businesses.
The Chancellor made no mention of inheritance tax in the budget despite recent reports on IHT simplification by the Office of Tax Simplification. We had expected to see some fundamental changes including changes to Agricultural Property Relief and Business Property Relief. It is still likely that these will be addressed in the Autumn Budget. Therefore, many farming businesses will need to consider restructuring before the autumn.
Please click link below for the 2020 Budget Review
Should you wish to discuss any of the matters above please call Gary Markham on 07970 794495
Rishi Sunak’s first budget was dominated by a series of measures to support the UK economy following the Coronavrius outbreak, with tax changes taking somewhat of a backseat this time.
Our Budget Review is attached however we have outlined a couple of points of interest.
There had been rumours circulating that the red diesel rebate was going to be cut for all industries. It was good to hear that the concession is remaining for the time being for agricultural businesses and hopefully, the importance of this rebate to the farming industry has been recognised by the Government. Our benchmarking figures indicate that current fuel costs for farming business are around £20/acre (£60/ha) therefore this already represents a significant cost for farming businesses.
We were expecting changes to Entrepreneurs relief as it has been criticised as being ineffective and too costly to the Treasury. The relief has not been abolished, as had been feared however the lifetime limit for eligible gains has been reduced from £10 million to £1 million with effect from 11 March 2020. This will have an impact on those selling farms or land for development as the tax on a £10 million gain will increase from £1 million to £1.9 million. There will be a need for restructuring ahead of the sale and more reliance on rollover relief in future for farming businesses.
The Chancellor made no mention of inheritance tax in the budget despite recent reports on IHT simplification by the Office of Tax Simplification. We had expected to see some fundamental changes including changes to Agricultural Property Relief and Business Property Relief. It is still likely that these will be addressed in the Autumn Budget. Therefore, many farming businesses will need to consider restructuring before the autumn.
Please click link below for the 2020 Budget Review
Should you wish to discuss any of the matters above please call Gary Markham on 07970 794495
