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Farmers' Averaging

In the 2015 Budget it was announced that from 6 April 2016, the existing two-year averaging provisions for farmers would be extended to five years.  After a consultation period, the new rules came into force with the passing of the Finance Act 2016 on 15 September 2016.

Averaging extends only to unincorporated farming profits, which are calculated after deducting capital allowances, but before offset of any available losses.  Members should contact their professional advisers for further advice. 

 

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