VAT and Furnished Holiday Lets

With the seemingly punitive changes to the taxation of residential property income introduced in recent years, you may have questioned whether letting out your farm or estate cottages on a residential basis remains worthwhile. Instead you may have considered letting these properties on a short term basis as a furnished holiday let (FHL). From an […]

How can I reduce monthly repayments without reducing the bank debt?

Often farming businesses face cash flow issues, typically for two main reasons – it is not generating enough cash from its trading operations or it has too much bank debt. However, we often see that when you breakdown the cash flow that the business is generating a positive cash flow from its trade (after paying […]

Residential property – to buy personally or through a company?

In recent years HMRC have reduced the amount of interest that is available for relief at an individual’s marginal rate of tax. Holding property personally has therefore become less efficient than in previous years for certain individuals. This provision is being phased in and started in the 2017/18 tax year and will be fully in […]

Reclaiming VAT on cars?

The ability to reclaim VAT on the purchase or lease of a vehicle depends firstly on whether the vehicle is considered to be a car, as there are specific rules relating to reclaiming VAT on cars. WHAT IS A CAR? For VAT purposes a car is a motor vehicle normally used on public roads, with […]

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Changes to VAT on PCP contracts

The VAT treatment of PCP contracts has changed following a European Court of Justice decision, in relation to Mercedes Benz Financial Services (MBFS). In broad terms a PCP contract is one where the customer pays a series of lease payments followed by an optional balloon payment to acquire the asset, or they can simply return […]

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