Have you decided that farm diversification is the next step for your business, or maybe you are weighing up your options? Here you will find some great information to help you and your diversification journey.
Cheese shops, camping barns, golf driving ranges, clay pigeon shooting, brewing, renewable power and riding centres – farm diversification comes in many different guises.
Diversification plays a crucial role in the modern agriculture and rural business sector and has become an increasingly likely consideration to future-proof business from the market and economic changes.
New enterprises often complement the existing business model, drawing upon the existing skills, experience, buildings, machinery, and land capabilities.
In fact, more than almost a fifth of farmers plan to diversify to make their farms sustainable post-Brexit, according to the NFU Mutual Diversification Report 2018. Read on to find out reasons to diversify and the tax implications it may have.
Anne Elliott, CEO of Latimer Hinks Solicitors, discusses Agricultural Property Relief (APR) and Business Property Relief (BPR) in regards to estate planning. …
As a solicitor who works with a significant number of agricultural families and business owners in the North East, I regularly discuss and advise on the use of APR and BPR when estate planning. At present, they are very generous to the taxpayer. However for a number of years there has been a threat of reviewing and limiting reliefs.
The summer is an excellent time to review whether or not you are making the best use of APR and BPR, as significant financial legislation is often reviewed in the Autumn Budget.
Ensure you carefully consider the long-term tax consequences of farm diversification projects before embarking on a new project
There are many ways in which farmers can look to diversify and for those that choose the right options, the benefits can be substantial.
A study by DEFRA Farm Business in 2017 revealed more than 60 per cent of UK farms had made the decision to diversify, highlighting how many businesses operating in the agricultural sector are looking for new ways to boost income streams. When undertaking any new business venture, it is always important to look at the possible implications and to do thorough research before making a decision.