Last Wednesday, the Chancellor announced that the allowance offers 100% relief against spending on plant and equipment in the year it is purchased, extending opportunity for farming businesses to invest in equipment and vehicles and obtain an immediate tax deduction.
Further measures revealed to benefit rural businesses include the suspension of the planned rise in fuel duty and the incentive for farmers to invest in green property improvements, with a new Green Investment Relief.
However, many industry stakeholders expressed disappointment in the lack of development of the taxation system governing how farmland is occupied.
The Country Land and Business Association also issued that the government had no plan to create prosperity in rural areas, highlighting that “The rural economy is 18% less productive than the national average, largely due to poor infrastructure, poor skills provision and an outdated planning regime.”
Farmers Weekly - Budget 2021: Main points for farmers include tax relief on kit
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