Farmer’s union calls for tax breaks

Farmer’s union calls for tax breaks

The National Farmer’s Union Scotland has called for tax breaks to encourage new agricultural businesses to rent land from landowners. In the Budget submission to the Chancellor, George Osborne, the NFU Scotland provided proposals for a scheme which would give an allowance to landowners that would be deductible from their rental income, minimising tax bills.

Other matters have also been raised, including reducing fuel duty, annual investment allowances, online filing now being mandatory and allowances for agricultural buildings. John Picken, the vice-president of NFUS, stated that the government would have to create balance between public sector cuts, industry taxation and encouraging growth. He said:

“Agriculture and food are two of the economy’s most promising areas of industry, with production on a strong footing and exports growing steadily. Ironically, however, while opportunities abound, it is difficult for new entrants to get started.”

He further stated that new businesses found it difficult to gain access to tenancies and land, especially when in competition against businesses which are already established. Tax breaks to encourage landowners to lease to new businesses would be effective while costing little, as the cases involved would be minimal.

Transport and the cost of fuel is an issue for all the UK, with Scottish farmers relying on transport to move goods to various areas, many of them remote.

Tax breaks can make a huge difference to any business, with a small business accountant having up to date information of relevant tax schemes and allowances, minimising your tax bill.