The Rural Bulletin Budget roundup - 23 November 2017

Budget Round Up

The Autumn Budget revealed a number of policy changes yesterday; here is a round-up of the key issues affecting farmers and landowners.

• Rural housing

The Chancellor pledged an extra £15.3bn for rural house building over the next five years – including £1.2bn for the government to buy land to build more homes and £2.7bn for infrastructure to support housing. He plans to deliver 300,000 new homes a year by the mid-2020s.

• Wages

The National Living Wage (for staff aged 25 and over) will increase from £7.50/hr to £7.80/hr from April 2018 – a pay rise of more than £600 a year for a full-time worker.

• Fuel duty

The rise in fuel duty that was scheduled for next year will be frozen – a relief for anyone living in the countryside who is reliant on private transport. 

• Income tax

Increases to personal tax allowances will see the tax-free band go up to £11,850 (for basic rate taxpayers) while the higher rate threshold will increase to £46,350 from April 2018.

• Stamp duty land tax

First time buyers purchasing property up to the value of £300,000 will no longer have to pay stamp duty land tax. Properties worth up to £500,000 will only incur SDLT on the value above the £300,000 threshold.

• Business rates

From April 2018 business rates will rise by the Consumer Prices Index (CPI) not the Retail Price Index (RPI), which is likely to benefit ratepayers.

• Corporate businesses

Indexation Allowance will be restricted on chargeable gains realised by companies from January 2018, increasing future Capital Gains Tax bills. Disincorporation relief will end in March 2018, making it more difficult to move away from a corporate structure. 

And ATED (Annual Tax on Enveloped Dwellings) rates will increase by the CPI from April 2018, increasing liabilities for companies that own residential property worth more than £500,000.

(Source: Old Mill accountants and financial planners)

Livestock worrying costs farmers £1.3m

Dog attacks on livestock cost the farming sector £1.3m last year, according to a report by the All-Party Parliamentary Group for Animal Welfare (APGAW). It says the Government must recognise that livestock worrying is a national social and economic issue, and encourages farmers to report all attacks to the police. 

Scottish Agri-Champions plan new strategy

Scotland’s four Agricultural Champions, appointed last year to advise the Government on a strategy for Scottish agriculture, have published their interim report.

Suggestions include developing a 10-15 year strategy, and delivering it in partnership with the industry. Rather than a one-size fits all approach it calls for visionary leaders to implement an integrated policy.

To secure public support for environmental payments it calls for a government-led marketing campaign, but insists that outcome-based farm payments will be required after Brexit, alongside a programme to support business skills, efficiencies and career opportunities.

Responses should be submitted by 29 December.