Many farming businesses today have diversified or are planning to diversify in the near future.
Due to the unique skills – both practical and entrepreneurial – required of successful farmers, diversification is often something of a culture shock and often means that they have to take a much different approach to their new business than has been the case with their farm.
Before taking the decision to invest in a new venture it is essential that you know what to expect:
- You must have sensible and realistic business planning – profit and cash flow projections that will give you the confidence to take the right decisions
- You must ensure that you have the funding in place for all set up costs, such as property refurbishment and alterations, asset purchase or working capital requirements
- You must ensure that the structure of the new business or project will enable the profits to be shared in the way that you wish, but with flexibility and tax efficiency
- You must take care that you do not create avoidable tax bills, either on the annual income or on the capital arising from sale or on transfer upon succession
- You must understand the effect that it could have on your farming business if it all goes wrong!
Our teams of business and tax advisers are here to assist you – to help you take the right decision for you, your family and your farm, so that your diversification is structured to achieve exactly what you require, in the most tax efficient way.
To learn more please call 01935 383 500 or email firstname.lastname@example.org.