The CLA has welcomed the Government’s proposal to extend the Income Tax averaging period for farmers.
The CLA represents landowners, farmers and rural businesses. In its response today (7 September) to the HMRC consultation on the proposed extension, the organisation said that the averaging of profits will help farmers to better manage potential fluctuations in income caused by industry-specific factors such as flooding and price volatility.
CLA President Henry Robinson said: “Extending the time period for the averaging of farm profits is a positive way to help farms and businesses to manage volatile financial performance. The existing ability to average profits works well for farmers and we welcome the fact that the Government is taking action to build on the scheme’s success.
“To minimise complexity and cost, Government should provide clear guidance, build on the processes of the current scheme as far as possible, and allow farmers the flexibility to choose to average for the period between two and five years that is right for their business and their circumstances.”