Budget 2015: Farmers granted tax relief

George Osborne, holds up his budget case for the cameras outside number 11 Downing Street. Credit: HM Treasury (Flickr)

UK farmers will now be allowed to average their income for tax purposes over five years, Osborne has announced in his latest budget.

In his Budget Speech the Chancellor said: “The fall in food prices is good for families; but it reminds us of the challenge our farmers face from volatile markets.”

“The National Farmers Union has long argued they should be allowed to average their incomes for tax purposes over five years; I agree and in this budget we will make that change.”

Up until now, farmers have only been able to average their profits over two years, resulting in large tax bills.

The tax averaging was a key issue in the NFU’s election manifesto for 2015 and follows on from the lobbying of government by its members.

NFU President Meurig Raymond said: “We are very pleased that Mr Osborne said that he had listened to the arguments by the NFU. As he mentioned in his speech, farmers are increasingly facing a volatile marketplace and this will enable them to manage the impacts of this.

“News that the annual investment allowance will be addressed in his Autumn Statement is also welcome. As [Mr Osborne] mentions, £25,000 is not an acceptable level which would encourage on-farm investment and we will await further announcements with interest.”

The tax change will come into place from April 2016.

WINOL Year Three: First Package ‘Farmers milked dry’

 

Local dairy farmers are being hit by industry wide milk price cuts this month.

Muller Wiseman, Arla Foods, Dairy Crest and First Milk have all cut the price they pay farmers per litre this month.

Some dairies have made reductions over the last four consecutive months.

Militant group Farmers For Action is calling for a standard price to be paid per litre by the dairy companies.

Hiltonbury Jerseys Dairy Farmer, Oliver Neagle said: “It’s a stressful time,” adding: “We need some security and guarantee of what we’re actually going to get paid.”

Milk Processor Dairy Crest said in a statement:”We are very disappointed to have to make this further price announcement to our farmers,” adding: “This is a challenging time for the dairy sector and all of us who work in it.”

Farmers are hoping the cuts are temporary and protests are planned nationally over the next few weeks.