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Agricultural

Agricultural property is generally defined as land that is used to grow and store crops or to rear animals (livestock or dairy farming) and includes stud farms for breeding and rearing horses. Early in 2010, HMRC Brief 03/10 was published, entitled “Guidance on plant and machinery capital allowances for the pig industry”. The document includes lists that are of primary interest to farmers but that are also relevant for other businesses. The declared aim of the document was to “illustrate the range of assets on which the industry might claim plant and machinery capital allowances”. A quick review will show that the lists are far from comprehensive, but they still provide a helpful summary of HMRC’s views on the correct tax treatment of a wide range of assets (Capital Allowances by Claritax Books).

Trades and professions can be considered as being a qualifying activity for plant and machinery capital allowances, but the rules of the Capital Allowances Act 2001 are complex. A properly formulated capital allowances claim ensures the use of the tax reliefs as they were intended.

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