Save tax with Farmers Averaging Relief

It is not uncommon for farming profits to fluctuate year on year. Averaging your profits can therefore be beneficial.

The criteria to make a Farmers Averaging Relief claim is as follows:

• The difference in profits must be more than 25% of the higher profit band
• Applies only to profits from farming, including rearing of livestock and market gardening
• You must not be using the cash accounting basis
• A claim cannot be made in the year of commencing or ceasing as a partner in a partnership
• You can make the claim over a two or five year period
• The relief is not available for limited companies

To speak to SFB about saving tax with Farmers Averaging Relief, please contact SFB on 03333 444 171 or email agriculture@sfb.group.