Earlier this week, Philip Hammond delivered his Autumn 2018 budget, the last before Brexit.
It would seem there is some good news for those looking at significantly investing in their farm business. From the 1st January 2019, the Annual Investment Allowance (AIA) is being increased five times from £200,000 to £1,000,000 for a period of two years. This means expenditure on say plant and machinery and some fixtures and fittings up to the new limit can be offset against the income of the business in the year that expenditure is made.
It is also good news for small rural retailers, i.e. farm shops, with all retail premises with a rateable value below £51,000 getting their business rates cut by a third from April 2019 for two years.
Other good news includes fuel duty being frozen, the retention of Entrepreneurs Relief after some speculation it could be abolished and increases to both the Income Tax personal allowance and the Capital Gains Tax allowance for individuals.
However, farm businesses with several employees need to prepare for increasing wage bills from April 2019 with increases to both the National Living Wage and the National Minimum Wage.
The full budget speech is available here. Whilst there is some good news for farmers from the Autumn 2018 budget, with Brexit soon upon us, the emphasis is on farm businesses to plan and prepare for the future. If there is any aspect of professional work that you require assistance with then please do not hesitate to contact Carver Knowles on 01684 853400 or by email firstname.lastname@example.org .