New tax regulation for farming partnerships

Farm partnerships where one of the partners spends fewer than 10 hours a week involved with the business will be hit by a new ruling from HM Revenue & Customs.

From 2 March, the  amount of loss that a “non-farming” partner  – for example, a spouse who doesn’t work on the farm, – can offset against other income is limited to £25,000 a year. Any excess will have to be rolled over.

Carlton Collister of accountant Grant Thornton said this sounded a lot, but he had clients with normally profitable businesses that lost £100,000 when wheat prices were at their lowest. He said it could also apply to those who had their land contracted and had little day-to-day involvement with the farm.

Are you, like many other farms, missing out on tax claims for R&D?

If you’re a limited company, you could be eligible for tax credits if you’re carrying out R&D on your farm. For more information and to find out if you’re eligible visit our R&D tax credits page.

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