The dairy boom.Can we officially say its over

No, a ltd company is normally set up to limit your personal liability. That is the purpose of it. But it does have other benefits too

For farming, it can suit to have a company structure if you have high profit. As sole trader you get hit at the top rate of tax. The company will pay 12.5% corporation tax on profits. If it disburses them to you, you pay tax at your marginal rate

If Mikekc the sole trader makes an additional 100k he pays (just say) 40k tax and can take the remaining 60k to go and buy a field. However if Mikekc sets up Mikekc Ltd.and it earns the additional 100k profits, it can pay 12.5k tax and put the 87.5k towards land. But the company owns the land in the latter scenario. Mikekc owns the company but it owns the land. That's not the same as Mikekc owning the land

Not sure. You can't get the long term lease relief if you are a connected party i.e. relative. You also can't get it if you are basically doing a swap. I don't know whether renting to a company in general would qualify - never mind your own company. It's not something I ever thought about to bother to look it up

There is nothing stopping you from renting it to the company though. Not sure why that might seem like an advantage. Unless you were hoping to extract the 17k a year from the company tax free. You would have to lease them your land though. And you'd have had to pay your own personal tax on the funds used to buy that land.

Sometimes people will transfer their land into the company as a directors loan. They will try to get it valued as high as possible. They might have some CGT to sort out as a result but they can basically withdraw that money from the company later on tax free. The company will own the land going forward though

I suspected as much....I'll have to think harder!😅

I enjoyed that post. Where/what will be the thing to invest in. I'm much the same. I won't be investing much on the farm for the next few years. I don't really want to go down a property route as i don't want the hassle of upkeeping and its too expensive now. My savings are making nothing so can you divulge more of your plans

It's called a comparison

Add to that most of these houses are in the middle of or very close your farm yard which brings it's own problems on a working farm.

They may not have had for a facts machine but facts are certainly useful when doing business

Would the whole point of having the limited company not be to have additional funds available to pay for land and buy it through the company to limit the liability of the individual when purchasing it. Would be owned by the company then and tax would only be paid when removing it from the company at a later stage ?

Probably be no better off when all is said and done financially wise but you would have the safety net of the company while paying for the land?

Putting in a drafting gate here and the rep is also in the robot game, highest spend per cow he's seen is 8k a cow on a greenfield site, and has done alot of places where 5-6k a cow has been spent, going to be tough times for the above unless they have another income bar the milk cheque

Rising interest rates by ecb to cool inflation is having a huge affect too