News from the Farmers Weekly tells us that Gordan Brown is planning to implement Tax relief changes which will effect the current Agricultural buildings Allowance and will come into effect in 2011.
How does ABA work?
On a £1m investment, relief on 4% of the cost means that £40,000 can be set against income for tax purposes in the first year, and in the 24 subsequent years, thereby reducing the amount chargeable to income or corporation tax. The Budget proposals are to phase this out over the next four years so that ABA's will operate at 4% this coming tax year, 3% in 2008/9, 2% in 2009/10 and 1% in 2010/11 After April 2011 it will end. (Source Farmers Weekly 13th April 2007)
I will be contacting my MP, as we all should within the industry, stand up for yourselves and don't let them get a way with it. This is our livelihood and our futures. Many of us have invested in new buildings over the past years, mindful of our budgets and that the tax relief will be taken into account?, how many of us will sink even deeper if this is allowed to go ahead?
Tuesday, April 17, 2007
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