WITH just over one month to the end of another tax year it is important to consider potential tax saving options.

Firstly, do you need to incur any capital expenditure on machinery?

The Annual Investment Allowance currently allows you to spend up to £500,000 on qualifying machinery and receive 100% tax relief.

There are special rules for assets bought on hire purchase and whether or not they were brought into use by the year end can affect the relief.

Also can any repairs to farm buildings or yards be brought forward into this current year?

The timing of sales also needs to be thought about if they are likely to occur near the year end.

If you have some cattle or wheat to sell then it may be worthwhile delaying this until the following accounting period.

There is also still time for pension contributions to be made in order to help minimise higher rate liabilities.

There is a £40,000 limit on contributions, but do you have unused relief available from previous years? The rules could well change after the election.

Have you made any capital gains in the year? Perhaps you can consider reducing these gains by disposing of assets to bank a loss or by making a negligible value claim on milk quota.

Inheritance tax can also be covered before the end of the tax year by making gifts within your £3,000 annual exemption.

Finally it is worth remembering that child benefit is restricted when one individual in the household has an income level exceeding £50,000. It can be worth amending profit shares if possible to ensure this doesn’t happen.

These are just a few ideas and you should always take specific advice tailored to your own particular circumstances.

*Rob Selley ACCA is an associate and farming specialist with A C Mole & Sons. He can be contacted on 01823-624450 or RSelley@acmole.co.uk