parallax background

Armstrong & Co understand the business of farming

J ames has extensive experience in agricultural sector from a farming background. James' family are pedigree dairy farmers and he has been involved with farming since a young age. He has infact lead the champion dairy cow which won the RUAS Balmoral Show in 1989..

He has a wide knowledge of all the farm suppliers and has vast experience of valuation of livestock. Both are necessary to ensure you minimise your tax liabilities.

Herd Basis

Herd basis is useful where farmers elect their livestock in this way. A production herd may be treated as a capital asset if an election is made for Herd Basis. This is of major advantage when livestock values are rising. On herd disposal, i.e. retirement, the profit was then exempt.

Contract Hire

Contract hire for expensive machinery may become a better option to minimise tax liabilities now that capital allowances are reduced. The monthly cost can be fully written off as an expense against your profits for the year.

Conacre Lettings

He has done a lot of research into the McClean case - which has consequences for farmers letting land as conacre each year. This case has caused a lot of concern since HMRC denied Business Property Relief (BPR) on the McClean estate. The definition of conacre involves a degree of land husbandry. To prove valid conacre the farmer letting the land should retain responsibility for fertilizing, seeding, hedge cutting, drainage and fencing on the tenant's behalf. Documentary evidence is extremely important and annual conacre agreements should be produced, signed by all parties and retained.

Where land is let in conacre, it is necessary to look in detail at the amount of work done on the land annually by the owner in order to determine which reliefs against inheritance tax , if any, are available.If there is no evidence of work being done annually, then the Revenue may argue that no business is carried on, merely managing an investment, and no relief against Inheritance Tax may be available.

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