Farmers trading quota can save on tax

By FWi staff

DAIRY farmers now have the opportunity to trade milk quota and limit their tax exposure, following the launch of an initiative at the Dairy Event on Wednesday (20 September).

Agricultural accountant Grant Thornton has developed a unique tax calculator which will help producers trade milk quota in the most tax-efficient way.

Clive Buckland, senior agricultural consultant, explains: “For the last year we have been advising clients to separate the production from the investment aspects of quota.

“This is because, with the changes in capital gains tax rules for quota, it is now much easier, with good planning, to buy and sell milk quota without incurring a capital gains tax liability.

“Now you can not only reduce the overall level of taxation of the business but create the capital losses and trading deductions to suit your individual circumstances.”

The service is available to all producers and there will be a small negotiable fee.

Details of all past quota dealings are entered into a spreadsheet and an individually tailored summary report produced for future reference.

“We will work out the best way to make milk quota pay,” adds Mr. Buckland.