Budget: NFU welcomes ‘average income’ tax move

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- Credit: Sarah Lucy brown

The National Farmers’ Union today welcomed a move by George Osborne to help farmers cope with their growing exposure to volatility in commodity prices.

The Chancellor is to allow farmers and growers to average out their incomes over five years for tax purposes, so making it easier for them to ride out years in which their incomes come under particular pressure.

Income averaging was among the proposals put forward by the NFU in its “manifesto” for this year’s General Election, and president Meurig Raymond welcomed the Government’s response.

“We are very pleased that George Osborne said that he had listened to the NFU and will allow farmers to average their incomes over five years,” said Mr Raymond. “As he mentioned in his speech, farmers are increasingly facing a volatile marketplace and this will enable them to manage the impacts of this.”

Mr Raymond added: “News that the annual investment allowance will be addressed in his Autumn Statement is also welcome.”