Farms, food producers, and artisan drinks

Agri-food & farming accountancy in Northern Ireland

NI farming and artisan food production has its own tax toolkit. Herd basis, farmers’ averaging across two or five years, Agricultural Property Relief, capital allowances on farm buildings, and a stream of grant schemes that need careful accounting treatment. We work with farms, food producers, and craft drinks businesses across NI.

Talk to us about agri-food & farming

Tax for agriculture is genuinely different. Farmers’ averaging lets eligible farmers smooth profit over two or five years to even out volatile income. The herd basis treats productive livestock as fixed assets rather than stock, which can move the tax bill substantially. Agricultural Property Relief on inheritance tax is one of the most valuable reliefs in the tax code and needs the structure to be right years before it matters.

Capital allowances on farm buildings, plant, and machinery move money around significantly. The Structures and Buildings Allowance on qualifying farm builds (3% per year on cost), Annual Investment Allowance on plant, and full expensing where available. Getting the timing and allocation right is the difference between a meaningful tax saving and a missed claim.

We work with arable and livestock farms, dairy operations, family processors, artisan bakers, butchers, farm shops, and craft distillers and brewers. Grant accounting is recurring work. DAERA Farm Sustainability Payment, Rural Development Programme funding, Invest NI agri-food funding, each with specific tax treatment and reporting needs.

Your challenges

What agri-food & farming businesses ask us

Farmers’ averaging

Two-year or five-year election and the planning around when to use it for volatile farming income.

Herd basis

Eligibility, election within the two-year window, and the accounting treatment for productive livestock.

Capital allowances on farm buildings

SBA, AIA, and full expensing across the farm asset base. Significant money for many farms.

Grant accounting

DAERA, RDP, and Invest NI grants each have specific tax and accounting treatment.

Agricultural Property Relief

Getting the structure and the ownership trail right years before inheritance becomes relevant.

Common questions

Frequently asked about agri-food & farming accountancy

Can I use farmers’ averaging?

If at least 75% of your taxable income comes from farming, yes. You can elect to average over two or five consecutive tax years. The election is made on the return and is irrevocable for that period, so we model the position before recommending.

Is the herd basis worth electing?

For dairy and breeding herds, often yes. It stabilises tax against volatile cull and replacement cycles. The election must be made within two years of starting the herd or going into farming, so the timing window is tight. We assess case by case.

How is a DAERA Farm Sustainability Payment treated?

Generally treated as trading income, taxable in the year of receipt or entitlement depending on the basis. Some specific schemes have capital treatment. We classify each grant correctly and keep the supporting records for HMRC enquiry.

I am passing the farm to my son. How do we plan for inheritance tax?

Agricultural Property Relief and Business Property Relief between them can take the IHT bill to zero if the structure is right. The ownership period, the trading status, and the use of the land all matter. We start the planning years out, not months.

Get in touch

Talk to an accountant who understands agri-food & farming in NI

15-minute call. No commitment. We will answer your questions and outline how we work with agri-food & farming businesses across Northern Ireland.

028 9508 4138

Other sectors

We also work with

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Hospitality from single-site to multi-site groups

Not in agri-food & farming? We work with NI businesses across every industry. The accountancy principles are the same. Get in touch.