the phase-out of agricultural buildings allowances
In the days when income tax
was 98% and agricultural buildings allowances were a flat 10% for
ten years, the availability of the latter for almost all
agricultural improvements was frequently of the essence to
balancing the books.
Although the top rate of tax is
currently 40% and the allowance 4% for 25 years, the continued
availability of the allowances was frequently taken into account
when arriving at the price to be paid for a farm.
Those who bought on such a basis have
been let down by the Government. Relief for both existing and past
expenditure is to be limited to a 4% allowance this year, 3% next
year, 2% in 2009/10 and 1% in 2010/11.
From 2011/12 agricultural buildings
allowances will cease to exist.
If you would like more information,
please contact Jeremy de Souza in our Tax team on 01962 844440 or
email him at jeremy.desouza@bllaw.co.uk
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