Farmers get tax break
AN important new taxation concession allows farmers to make a claim for tax relief on a loss as soon as it is known, according to Bob Black, agricultural specialist with Saffrey Champness.
He says by exploiting this aspect of the regulation known as “averaging”, it is often possible to get an early tax refund on profits made in a previous, more prosperous year.
Relief applies only to individuals, including members of a partnership where each partner has the choice of whether to make an averaging claim.
Averaging was introduced to help farmers smooth out fluctuations in annual incomes, taking account of outside factors such as weather, prices, subsidies and interest rates.
- The Scotsman 27/03/98 page 31