Budget UK 2024 is “both complex and far reaching” for farmers and all sectors of business, according to Seamus McCaffrey, a Co. Tyrone-based accountant.
“Full details of the chancellor’s proposals will be made available by HMRC over the coming days.
“But, already, we know that the measures put forward will impact across every tax: income tax, capital gains tax, inheritance tax and Stamp Duty,” McCaffrey said.
The farming sector will be directly impacted by all of the main tax changes outlined during the chancellor of the exchequer’s speech.
Budget UK 2024
According to McCaffrey: “The proposed change to employers’ national insurance contributions is a case in point.
“For farmers employing a person on the current minimum wage the increased employer’s national insurance contribution will amount to £2,400 per annum.”
“Fundamental changes, where agricultural property relief is concerned, are also coming down the track.
“In the future the 100% rate of relief will apply to the first £1 million of combined agricultural property.
“However, inheritance tax will be paid on the excess above the £1 million threshold at a rate of 20%. Up to now, all farming businesses had been eligible for full agricultural property relief,” he added.
According to McCaffrey, specific changes to capital allowances will also impact on farming businesses. These include the reclassification of some double cab pickups as cars.
“We also know that the interest charged on the late payment of tax will increase to 9.5%.”
The coming days “will see the full details of the Budget 2024 proposals fleshed out. However, it is already clear that their impact on the various farming sectors will be significant.
“Given this situation, it is imperative for farmers to work through the details of the various tax changes with their own accountants and to consider options to mitigate the effects of the proposed tax changes,” he said.
