Brexit and the impending withdrawal from current CAP structures and funding provides the UK with the opportunity to rethink agricultural taxation policy and focus on what the sector needs to ensure a sustainable future.
With that in mind the Central Association of Agricultural Valuers (CAAV) published a Discussion Taxation Paper: Agricultural Productivity, Land Occupation and Use After Brexit. Our Rural Professional Group will be responding to the proposals in the paper. As RICS professionals, we want to hear your views on this subject.
Proposals for discussion
- Rent relief from Income Tax for letting farmland, geared to length of letting.
- Agricultural Buildings Allowances reinstated with a rate of 5%.
- Introduction of a specific capital allowance of £2.5m to be available on a floating basis over a five year period for automation, digital and other new technologies.
- Neutrality between Corporation Tax and Income Tax for businesses.
- Review treatment of composite interdependent trades.
- Research and Development relief extended to Income Tax.
- Raise the limitations on sideways loss relief.
- Give some relief for the treatment of the costs of abortive proposals.
- An Australian type deposit scheme to manage money between years and so support resilience at farm level.
- Review tax treatment of environmental expenditure.
Fiona Mannix, Associate Director of RICS Land Group