Budget delivers a few '˜nuggets' for farmers - NFU

Sean McCann, Chartered Financial Planner, NFU Mutual said there was little in the headlines to help struggling farmers or boost the rural economy – but the detail of the budget does have a few nuggets farmers can use to their benefit.

He added: “Many farmers have investment bonds for a long-term and tax-efficient saving – there’s good new with changes in taxation which should make taxation of any withdrawals much fairer and simpler to understand.

“The Chancellor’s promise to increase the tax-free personal tax allowance to £11,500 in April 2017 and £12,500 by the end of the current parliament will put more money in the pockets of taxpayers. For those paying higher rate income tax, the Chancellor’s promise to raise the threshold for 40% tax to £50,000 over the same period is a real benefit.

“Many farmers have invested in buy-to-let to diversify their business interests and provide an income. The Chancellor’s announcement of a ban on charging tenants letting agent fees could force more costs on landlords – yet another hit on the potential income from buy-to-let.”

Tim Price, Rural Affairs Specialist, NFU Mutual said in relation to fuel duty: “Farmers and country people can breathe a huge sigh of relief that the planned increase in fuel duty won’t take place – and there were no measures to penalise users of diesel vehicles – which provide vital transport for farmers and many people living and working in the countryside.”

In relation to rural broadband, Mr Price said: “Let’s hope the Chancellor’s announcement of 100% tax relief on companies providing fibre optic services will help get decent broadband to more rural areas and enable them to join the modern business world.”