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.

• From: HM Revenue & Customs
• Published: 9 December 2015

Documents

Income Tax: averaging rules for farmers

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Draft clause 19

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Draft explanatory notes clause 19

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Details

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