Tax Breaks for Businesses Affected by FMD

Even though the Foot and Mouth crisis has all but disappeared from the front page and national news in the last few months, it´s devastating effects are still being keenly felt by many farmers and those in the outdoor and tourism trade in affected areas. However, there is new hope for some as the Inland Revenue announces tax concessions for those whose income has been affected by FMD.A full bulletin is available from the Inland Revenue www.inlandrevenue.gov.uk– 0845 3000 157 – 7day helpline and provides guidance on the concessions that are available, but in brief…> Time to pay: Deferment of tax liabilities for 2000-2001 is available (interest-free) for up to six months. Loss relief: Traders will be able to make a claim for losses incurred over 2000-2001 based on an estimate, before their final accounts are drawn up. So someone with a year-end of April 2001 can estimate losses at the end of April and claim right away, filling in their return with the final amount of loss later on.Furnished holiday lettings: Income from this source must normally satisfy certain conditions to gain tax relief; this will be disregarded by the Inland Revenue for 2000-2001, providing the trader met the conditions in 1999-2000.Compensation: This is the important one, but is very complex and will require specialist advice in each case from the Inland Revenue. Currently, compensation is only available to farmers for livestock destroyed as a result of the outbreak.