BIM73105 - Farmers' averaging: checklist
To carry out a quick review of an averaging claim, check that:
- The trade is either farming or market gardening. (The intensive rearing of livestock or fish on a commercial basis for the production of food for human consumption counts as farming for this purpose), (see BIM73110).
- The trade is carried on in the UK (see BIM73110).
- The claimant is not a company (see BIM73110).
- The claim was made not later than:
- two years after the end of the second year of assessment to which it relates, for pairs of years up to 1995-96 and 1996-97 (see BIM73155),
- 22 months after the end of the second year of assessment, for pairs of years 1996-97 and 1997-98 onwards (see BIM73155),
- or, exceptionally, is made under the extended time limit for further claims provided by ICTA88/S96 (5)(c), see BIM73150. (Note however that a formal signed claim is not generally required provided there is a clear indication in the computations or correspondence that an averaging claim is intended).
- The claim covers two consecutive years of assessment (see BIM73115).
- Neither of those years:
- is the year of commencement of the trade,
- is the year of cessation of the trade,
- precedes a year which has already been included in an averaging claim, (see BIM73115.)
- The profits dealt with by the claim are the Case I profits:
- before capital allowances and balancing charges (for trades which commenced before 6 April 1994, and where the claim is for 1995-96 and 1996-97 or an earlier pair of years)
- after capital allowances and balancing charges (for trades which commenced on or after 6 April 1994 or, for other trades, where the claim is for 1996-97 and 1997-98 or a later pair of years), (see BIM73120).
- Of the two profit figures, the lower figure:
