[25 September/Dairy News]

Federated Farmers Vice President, Andrew Hoggard, said people who recently bought farms and are highly leveraged could be affected by the introduction of a capital gains tax putting downward pressure on land values. He added it could be beneficial for those about to purchase a farm after its introduction. The possibility of a capital gains tax, including on agricultural land, was raised in a report by the Tax Working Group. It added a potential option for extending capital income taxation was to extend the tax net to include gains on assets not already taxed such as from realisation of land other than a family home. It also recognised the possibility of roll-over-relief. It considered new environmental taxes including those on greenhouse gas emissions from agriculture. The final report with recommendations to the government is due in February 2019.