No Relief Tax For DFB Farmers
UK - HM Revenue and Customs (HMRC) has suggested that no tax relief will be available for former Dairy Farmers of Britain (DFB) members in relation to the majority of losses suffered by the collapse of the business.
18 January 2010
1 minute read
On hearing the long-awaited decision by HMRC, National Farmers' Union (NFU) National Dairy Board Chairman Gwyn Jones said: “We are bitterly disappointed that HMRC suggests that no tax relief will be available on the majority of losses suffered by DFB members. It seems logically inconsistent to suggest that tax relief is unavailable on the A shares issued in March 2009 because they had little or no value when issued, while at the same time stating that these shares fully satisfied the debts due to members on their Member Liability Loans, Member Capital Accounts and Member Investment Accounts.
“This position must be challenged and we are already seeking further discussions with HMRC on this matter. We will also be seeking further clarification on the position for corporate members, as the current guidance only relates to individual members.”
The majority of losses suffered by DFB members occurred on their share of investment accounts, was typically around £15,000.
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