Capital expenditure to reduce your tax bill


With the end of the tax year less than a month away, many farm businesses will also be approaching their financial year end and may well be expecting an increase in profits on previous years’ results.  Unfortunately this increased profit will, in many cases, bring with it an increased tax liability next January unless tax planning measures are taken now.

Capital investment is a very effective way to reduce your tax liability as it currently attracts 100% tax relief on the first £250,000 of qualifying plant and machinery expenditure.

There are numerous finance options available with banks and other lenders keen to support the agricultural sector as it is proving to be a relatively ‘safe’ economy in the current global climate.

Specialist performance grants of up to 40% are available through the RDPE Northwest Livestock Programme designed to help improve the overall economic performance of livestock holdings in the North West of England.  This programme offered over £600,000 of funding to 111 North West farmers in the September 2010 round of applications.  To read more about the programme and eligible expenditure click here.

Spiralling energy costs are giving rise to an increasing number of renewable energy projects backed by the on-going support available in the form 100% tax relief on the cost of installation and the opportunity to generate tax free revenue on surplus energy.

To discuss tax relief available on capital expenditure in more detail call Judith on 07817 046096 or to book your free initial consultation and quote click here.