What to invest in?

[landandsea]

I have a small(150acres) mixed mostly livestock farm in Aberdeenshire. I also have a full time job. However I am being made redundant from that job after 25years of service. Due to a young family Im not yet ready to throw all my eggs into the farming basket so have secured myself another job with similar income. The further good news is that my old firm have given me a decent redundancy package, I now need to find a way to reduce my tax bill this year. I would have around 50K to spend that would save me 40% tax. I would invest more if it seemed like the investment would pay. We currently have a small wind turbine (15kw) but still have an electricity bill of around 3k per year to offset . My question is what should I spend my money on? I don't really want to spend it on traditional farming things like tractors and implements as that's a bottomless pit. Is green energy still profitable for small farmers with relatively small energy costs?

 

[Still Farming]

Crystal ball and join the club.

 

[Alwaysinit]

Just looked on here to ask the same question, so watching with interest.
If you had a few 100k to invest where would you look.
I see renewables being "the next big thing" but how and where do you get into it?

 

[Still Farming]

The renewable bubble has burst for many.
Unless for electric cars possibly?

 

[scotston]

From a man that owns a 50kw chp, an 800kw turbine, straw burner, a little pv and many differing heat pumps, I would say convert the block to organic and spend the cash there. You'll make more in the short and long term and have plenty ways to offset tax. Not necessarily depreciating machines either.

 

[Highland Mule]

If your electricity bill is still £3k a year when you’ve got a 15kW turbine, I’d say you should be looking at why that is the case. I’m well under £1k a year with no generation.

As for the redundancy payment, I’d be speaking to an accountant about the tax issues. How old are you too? If close to mid 50s, and it works with your fund, might be worth throwing into your pension for a few years to avoid tax, and then taking back out as lump sum to trigger/ crystallise your fund before it grows too much.

 

[Will Wilson]

I think you will need professional advice - a pension contribution would be logical.

 

[landandsea]

Im 42 and do plan to put a chunk into my pension but with a young family the next 13 years to when I can get pension money back seems like the years of my life I will need the money most. Saving accounts will not get me the tax back only spending on the business will do that. A tractor or other big implement will deprecate although the one I have is getting older and does cost a bit in repairs.

As for my electricity bill over the last 5 years it's ranged from 1.5k to 3k it includes 2 houses and a granny flat. One house and the granny flat is fully electric (heat pump) all of whose occupants like a very hot house. The lower bills were partly because no one was in the granny flat at the time but looks like it will have someone in for the foreseeable future. I was thinking of trying a heat pump on the other house but it is older and I do worry it will not be as good in it as the new house. But was thinking if I did that alongside some other small renewables project perhaps might work OK considering the tax position.

That all said the complete lack of enthusiasm from you all is not filling me with much confidence it's the right way to go.

Most things I can think of spending on farm wise would only reap rewards with more work, with what we have already alongside a full time job and 3 kids not sure I need any more work.

 

[BBE]

I'd hang fire a bit. If the government has any real ambition of reaching the targets it's setting itself it will have to offer greater financial incentives for renewables. I'm not holding my breath though!

 

[suffolksmallholder]

Hospitality. @landandsea
I have a little seasonal granny flat that brings in folk from all over the world. I have always vowed never to rely upon the income and this last year proved a point!
I know a little area near Brechin as rellies used to live there and it is a pleasant spot in summer. Not so good in winter though. Family have moved South now on 'rents passing so they no longer have the farm.
I'd suggest doing things you enjoy and particularly bringing your children on into adulthood. I made a massive decision in 2008, yes that year of turmoil, and my lot are now out in the world and my big decision turned out as the right one. Childern were just into teen years then.
Ethical investments are ok too. Perhaps find a job that 'tickles' you for three days a week and the rest of the time you can spent messing around at home? Hope this helps.
SS