Achieving The Grant And Tax Breaks For The Horse
Submit Articles Back to Articles
7 June 2011
equine businesses are struggling from the impact
of the recession on their industry, and might glance to their
farmers, who seem to be prospering, and wonder if they are missing
advantages are all there, they just have
to ensure that they are being picked up.
‘Single Payment Scheme’ known as the Single Farm
Payment applies to equestrian property as well as farms, so if this has
been claimed consideration should be given to apply for this.
Most equestrian properties
have woodland or
an opportunity to plant woodland to provide shelter and protection and
are grants from the Forestry Commission for planting and management.
Budget in March introduced tax relief and plans a
consultation on Feed-in Tariffs (FITs) and Renewable Heat Incentives
the aim of clarifying the rate at which allowances may be
claimed. RHIs have been prominent
in the March Budget
and need to be explored.
issues such as grid connections, planning and
funding can be negotiated, the renewables options open to farmers and
landowners are numerous and rewarding, if approached
correctly. The options have opened up
the details of the RHI, revealed in March 2011.
This Phase 1 announcement applies to non-domestic
installations and to
eligible plant installed after 15 July 2009.
Phase 2, to be announced next year, will extend the
domestic installations and additional technologies.
both cases, and like FITs, the RHI offers the
producers of heat from renewable sources a guaranteed payment for every
kilowatt-hour of useable heat produced.
The details of the scheme, which comes into force in June
2011, were recently
announced and will offer still more opportunities for rural landowners
including equine businesses.
RHIs are not just noisy turbines or solar panels
that will make horses shy but harvesting rainfall and utilisation of
efficient digestion of the muck heap comes to mind.
a commercial equine operation there is the
potential for 100% inheritance tax relief for a business, the offset of
against other income, and the reclaim of input VAT subject to the
partial exemption through liveries etc.
addition, if guidance is obtained from the recent
Budget there is the opportunity to form EIS companies in various areas
bloodstock or, if necessary, the RHI.
What is EIS?
Chancellor of the Exchequer considers ‘small
businesses are the innocent victims of the credit crunch’. He
improvement of the Enterprise
Investment Scheme (EIS). Subject
approval, the rate of income tax relief for such an investment will
from 20% to 30% from 6 April 2011.
Further changes will be made to such schemes and Venture
(VCTs) from April 2012:
increase in the thresholds for the size of
qualifying company for both EIS and VCTs to fewer than 250 employees,
the company having no more than £15 million of gross assets before the
increase in the annual amount that can be invested
via an EIS or VCT in an individual company to £10 million; and
increase in the annual amount that an individual
can invest through EIS to £1 million.
energy-efficient hand dryers are to be added
to the list of technologies that qualify for 100% allowances as
will be done during
summer 2011, and effective from April 2011, tax relief for research and
expenditure by companies that fall within the small and medium-sized
definition is to be increased.
qualifying expenditure benefits from 175%
relief. Subject to
EU state aid
approval, this will be increased to 200% from April 2011 and 225% from
Government also plans a consultation on feed-in
tariffs and renewable heat incentives with the aim of legislating to
the rate at which allowances may be claimed.
time is therefore ripe for all equine businesses
to look at tax and commercial efficiency.
Farming (and therefore stud operations) is excluded from
breeding operations without land, the RHIs, racing syndicates etc, are
those equine businesses that feel in a “hole”
there are currently a number of tax breaks, grant advantages and
investment alternatives available through syndicates and RHI.
the Annual Investment Allowance (AIA) of £100,000
of First Years Allowances (FYAs) available before 5 April 2012 this is
to act and not sit back – there are opportunities and they need to be
and taken advantage of.
not miss out on the recent Budget, the agricultural
p grants and the Chancellor wanting to help “small
which are innocent victims of the credit crunch”.
Take the opportunities – there are many
outside investors wanting to invest and this can be achieved tax
all grant and RHI
opportunities together with outside investors looking for commercial
and tax protection. Do
not miss the
About the Author
Supplied by Julie
Butler F.C.A. Butler & Co, Bennett House, The Dean, Alresford, Hampshire,
01962 735544. Email;
Julie Butler F.C.A. is the author of Tax
Farm and Land Diversification of
which the 3rd edition is to be
published shortly (Bloomsbury
Professional), Equine Tax Planning ISBN:
0406966540, and the forthcoming
Stanley: Taxation of Farmers and
Follow us @Scopulus_News
Article Published/Sorted/Amended on Scopulus 2011-10-25 14:58:18 in Tax Articles