Article by David Missen, agricultural partner with Larking Gowen, East Anglia. This article appeared in the November 2005 issue of Tax Adviser. Although allowable deductions in farm accounts ought to require little more than a cursory glance at the statutory sources followed by a browse through HMRC's Business Income Manual, life is sadly never that simple. Partly this is because farming has historically enjoyed a somewhat favourable tax treatment and some vestiges still remain. Partly the trade itself is relatively complicated and therefore the calculation of allowances and disallowances requires at least a working knowledge of farm operations. Partly it is in the nature of the business that farming is a twenty-four hours a day, seven days a week occupation and therefore, in the mind of the farmer at least, the business and private expenditure are inextricably linked - nowhere more so than in the farmhouse.
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