Welcome to our Summer 2022 edition of Agriculture and Farming
We’re delighted to launch our Summer 2022 agri newsletter at the Suffolk Show, which is returning for the first time in three years – please come and see us at stand 636! We were able to catch up with Bruce Kerr , Director of the Suffolk Show to see how he views the way the previous two years have affected the sector, and how the Show will be celebrating Her Majesty the Queen’s Platinum Jubilee. The Suffolk Show is just one of the events we’ll be exhibiting at this year, so if you’re unable to get to that, do keep an eye on our social media feeds for news of other events we’ll be attending.
Nick Banks
W hilst this issue focuses on some of the current issues facing the agricultural sector, we’re very pleased to include an interview with Emily Foskett, the creator of Emily Mortimer Jewellery. Regular readers of Adviser may recall that we have followed Emily’s business development story over the past few years, and we are happy to see that lockdowns haven’t held her back as she now has her own jewellery boutique in Woodbridge as well as a thriving digital retail operation. Emily is exhibiting at the Suffolk Show at stand 716. Many farms and estates now include farm shops and cafes to complement their existing activities. On page 8 Ryan Pearcy , SB Digital Director, explains how the management of financial data from these ancillary business locations can be enhanced through modern technology, in order to make use of your retail resources more productively.
Tax remains a key issue for the sector, and a significant change to the tax system will happen next year with the change to Basis Period Reform. This change seeks to align the tax assessment of profit to a fiscal year basis rather than a financial year basis. Tax Advisory Director Chris George and Private Client Director Simon Hurren take you through the changes and explain how to plan ahead. Graham Doubtfire is a Private Client Tax Partner who has acted for farming businesses for more than 25 years, during which time he has supported the transition of assets between one generation and the next and assisted many farming families to understand the tax consequences that could arise. On page 12 he looks at tax reliefs within the sector and why a tax assessment of the business is so important ahead of any challenges from HMRC regarding the status of the business. Our agricultural insurance business team are out and about seeing new and existing clients on site at their farms, but one issue our advisers have repeatedly seen lately is the undervaluation of farm and rural buildings –
which then becomes a problem if a property needs to be rebuilt. If the insured value submitted by the policy holder is inaccurate there is a strong chance their payout will also be less than expected, so it’s advisable to work with your broker to get this correct. Find out more on page 14. Finally, some good news for farmers and estate owners who are thinking about creating new woodland. Chris George , Tax Director, explains on page 3 how this can produce a healthy income stream through Woodland Carbon Units, which in most cases will quickly recoup the initial costs and is tax free, as well as benefitting the environment. Who wouldn’t want to know more about a scheme which is exempt from Income Tax, Corporation Tax and VAT! We hope you enjoy this edition of Agriculture and Farming. If you want to discuss any of the points raised, please get in touch your usual Scrutton Bland contact.
Nick Banks
2 | SCRUTTON BLAND | AGRICULTURE AND FARMING
Made with FlippingBook Learn more on our blog