Farming & Diversification - Tax Planning Roundup

Introduction

Farming is going through the biggest changes in decades with the Agriculture Act 2020 and the change of subsidies to Environmental Land Management Scheme (ELMS).

With changes to the Town and Country Planning Act proving serious potential for development gains and the need to ‘bridge the gap’ with the loss of subsidies and increase farm losses there is a need to understand all areas of tax planning impacting on the farming industry.

This virtual classroom session will consider the key areas for farming and diversification.

What You Will Learn

This live and interactive session will cover the following:

• The 130% ‘super deduction’ for capital allowances, restricted to companies, the role of the corporate structure with ‘research and development’ tax advantages
• Tax planning around the BPS exit payment in 2022 - advantages for farm tenants
• Full understanding of ELMS to maximise profitability and impact on all areas of tax planning and farm business forecasts
• Agricultural tenancy reform and tax and financial considerations for agricultural landlord and tenants
• The Budget carry back of tax losses 3 years maximising the tax relief, the need for business plans and full computation of financial advantages and disadvantages
• Extension of £1million AIA to 31 December 2021 tying into tax loss planning
• Cottage tax planning - extension to SDLT holiday opportunities to reduce investments for trading structures under Balfour and set income tax losses against residential gains at 28%
• New CGT returns - 30 day payment of CGT, complex farm residences with split of PPR, mix of farm worker accommodation and lettings and pony paddocks
• Furnished holiday accommodation and glamping - income tax, VAT
• Mixed rate SDLT HMRC’s tough approach and the tribunals Hyman, Miles - Till
• No changes to CGT and IHT in Budget 2021 and the need for full succession planning before the Budget changes to include Agriculture Act 2020 interaction
• Tax free woodland income, replanting subsidies and woodland carbon credits
• Tax planning around rewilding and natural capital reporting
• The VAT complication of liveries and other farm diversification, the problems of serviced land supply in defining exempt and standard supplies for VAT
• VAT opt to tax on farm development and building restoration
• Maximising farm housing development profits and minimising the tax, with changes to the planning rules and providing strong financial support for the farming operation

Recording of live sessions: Soon after the Learn Live session has taken place you will be able to go back and access the recording - should you wish to revisit the material discussed.