Policy paper

Income Tax: averaging rules for farmers

This applies to individuals who are eligible to average their business profits for Income Tax purposes under the averaging rules for farmers.


Draft clause 19

Draft explanatory notes clause 19

This file may not be suitable for users of assistive technology. Request an accessible format.

If you use assistive technology (such as a screen reader) and need a version of this document in a more accessible format, please email different.format@hmrc.gsi.gov.uk. Please tell us what format you need. It will help us if you say what assistive technology you use.


This legislation will enable an individual who carries on a qualifying trade to average their profits over 5 years for Income Tax purposes. They will continue to have the option to average over 2 years. The legislation will also simplify the rules for farmers and creative artists who can benefit from two-year averaging where the profits of one year are 75% or less of the profits of the other year.

Published 9 December 2015