Business Tax

Farmers’ Averaging

The period over which self-employed farmers can average their profits for income tax purposes is to be increased from 2 to 5 years with effect from
6 April 2016.

Simplified Expenses: Partnerships

The government will amend the simplified expenses regime introduced in FA 2013 to ensure that partnerships can fully access the provisions in respect of the use of a home and where business premises are also a home.

Tax Relief for Businesses Contributing to a Partnership Funding Flood Defence Scheme

Finance Bill 2015 will introduce legislation to allow a specific income tax or corporation tax deduction from business profits or property business profits for contributions made on or after 1 January 2015 to partnership funding schemes for flood defence projects (known as Flood and Coastal Erosion Risk Management (FCERM) projects). No deduction will be allowed if the contributor, or a person connected with him, receives, or is entitled to receive, a disqualifying benefit.