Close
Close
Close
Close
Close
Close
Close
Close
Close
Close
Close
Close
Close
Close
Close
Close
Close
Close
Close
Close
Close
Close
Close
Close
Close
Close
Close
Close
Close
Close
Close
Close
Close
Close
Close
Close
Close
Close
Close
Close
Close
Close
Close
Close
Close
Close
Close
Close
Close
Close
Close
Close
Close
Close
Close
Close
Close
Close
Close
Close
Close
Close
Close
Close
Close
Close
Close
Close
Close
Close
Close
Close
Close
Close
Close
Close
Close
Close
Close
Close
Close
Close
Close
Close
Close
Close
Close
Close
Close
Close
Close
Close
Close
Close
Close
Close
Close
Close
Close
Close
Close
Close
Close
Close
Close
Close
Close
Close
Close
Close

Cows & Money: Budget 2020 Special

So Budget day started early with a cut to interest rates of 0.5% back to their record low of 0.25%. this will help many farm businesses but even though it is a seismic shift it will only reduce interest payments by £5,000 per year on a £1 million debt, only £3-4,000 when you factor in the lost tax relief!

This was sparked by the Corona virus threat which also made a large impact on Rishi Sunak’s first budget.

There was a significant give away for employees and employers in the form of enhanced entitlement and repayment of Statutory Sick Pay, along with significant reductions in business rates for retail and leisure premises. This will certainly help employers if they lose significant numbers of staff for periods due to the virus, and the rate relief will assist many farm diversification ventures.

There were however a few notable points;

Structures & Buildings Allowances were increased to 3% from 2%. Whilst representing a massive increase in the relief, 50% increase, it still means relief for buildings will only be achieved in full after 34 years!

Has the anticipated Inheritance Tax reform simply been delayed? The suggestions of replacing it with a transfer tax of 10-20 on all assets made by the All Party Parliamentary Group on the subject might get some legs over the coming months. This would potentially levy tax on transfers of farms, so is it time to think about inter-generational transfers?

You can read our full Budget 2020 analysis here.

If you have any questions on how this Budget will affect your farming business please contact Rob Hitch on 01228 530913 or speak to your usual tax contact. 

Other news

Covid 19 – Client Advice

26th May 2020
1 Star2 Stars3 Stars4 Stars5 Stars (3 votes, average: 2.33 out of 5)
Loading...

Cows & Money: COVID-19 Update

13th May 2020
1 Star2 Stars3 Stars4 Stars5 Stars (1 votes, average: 5.00 out of 5)
Loading...

SEISS Update

7th May 2020
1 Star2 Stars3 Stars4 Stars5 Stars (1 votes, average: 5.00 out of 5)
Loading...

VAT Scale Charges 2020/21

1st May 2020
1 Star2 Stars3 Stars4 Stars5 Stars (1 votes, average: 5.00 out of 5)
Loading...

News archive

<May 2020>
MTWTFSS
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31

May 28

No events today