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.