Farm income averaging period extended
The National Farmers Union (NFU) has welcomed a 2015 Budget measure to help farmers face the challenges of volatile market conditions.
In his 18 March Budget, Chancellor George Osborne told MPs: “The National Farmers Union have 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.”
The Budget document added: “Uncontrollable factors such as the weather lead to volatile profits for farmers, making it difficult to plan for the future. The government will provide further support to farmers by increasing the period over which they can average their profits for income tax from two to five years from April 2016.”
The government will consult later in the year on the detail of the details of the scheme.
NFU president Meurig Raymond said: “Farmers are increasingly facing a volatile marketplace and this will enable them to manage the impacts of this.”
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