Depending on whether you are looking to invest, raise capital, diversify or leave the agricultural industry, Critchleys can advise you on a range of options.
Whether you are looking at starting a farming business or expanding the range of things you already do, we provide practical help with budget and cash flow forecasts, how to structure your business and advise generally on the overall business plan.
Whatever type of business venture you are considering, you need to plan carefully to maximise the tax advantages available to you.
Critchleys can help you with specialist tax advice, especially on VAT, and advise on whether it will be in your interests to set up separate companies to take advantage of the corporation tax thresholds for incorporated businesses.
Farming businesses, just like all others, will continue to qualify for allowances on plant and machinery.
The annual “writing down allowance” has been reduced from 25% to 20% (with even lower rates for equipment that is integral to buildings), but the good news is that there is an investment allowance so that the first £50,000 of expenditure on plant and machinery can be written off against taxable profits in full.
Sometimes it’s not clear what counts as plant and machinery. Motor vehicles clearly do. So too does the computer you use to help run the business. But what about grain silos? Or glasshouses? Where it's a grey area, we'll be pleased to try to get the most favourable interpretation for you.
If you are considering retiring from farming, or moving out of your business, you need to bear in mind the opportunities available to you for maximising your Capital Gains Tax (CGT) and Inheritance Tax (IHT) allowances. Options include: