Volatility, volatility, volatility! With one crop a year and wheat prices ranging from below £100 to over £200 per tonne in recent years, businesses in this sector will have experienced the whole range of emotions.
With tax bills from good years, often falling due in the next year when profitability can be significantly less, getting your long term strategy right is essential. Through our experience and knowledge of agricultural tax rules, such as two and five year averaging, we help our clients minimise their tax bills and the subsequent impact on cash flow.
Machinery price inflation has made the capital requirement in this industry huge. We help our clients review their different options, be it to lease, hire or buy machinery so they make the right decision for their business. For our clients who go down the route of buying machinery, we advise on the timing of the purchase to avoid any nasty surprises in terms of tax bills.
As with all farm business planning, a keen eye has to be kept on the inheritance and capital gains tax rules, and how these will impact on the success of the business in the future.