Farms that incorporate into a limited company could save thousands of pounds
of tax, according to advisers.
Accountants Old Mill Rural Services said that businesses which incorporate
after the introduction of the single farm payment (SFP) can receive an element
of the payment tax free by transferring the entitlement into the limited company
SFP entitlements are classed as intangible assets and can be written off
against their income, said Old Mill partner Mike Butler.
Although the transfer could incur a CGT bill, the introduction of
entrepreneur’s relief on incorporation will significantly reduce that bill.
‘In total, a typical farming business could save more than £35,000 in tax by
incorporating after the SFP was introduced,’ said Butler.
But he warned that impending anti-avoidance legislation meant it was
particularly important to move into the new corporate structure with ‘sound
The SFP is the main agricultural subsidy scheme.
Does Darwin's theory apply to taxation? Colin ponders...
The UK tax gap fell in 2014-15 to its lowest-ever level of 6.5%, revealed official statistics published today
Changes to the tax system is urged to support the growth of entrepreneurs, found a report from the Grant Thornton UK, the Institute of Directors, and the Prelude Group
The EC has been instructed to draft a European Union (EU) directive authorising an EU financial transaction tax, which would apply to ten of the EU’s 28 member states