BIM73160 - Farmers' averaging: claims to other reliefs

A farmer making an averaging claim for any year of assessment may withdraw or amend claims to relief for that year under any other provision of the Taxes Acts, or submit a new claim for such relief, at any time within the time limit for claiming averaging and before determination of the averaging claim.

ICTA88/S96 (9) applies to ’any claim for relief for that year under any other provision of the Income Tax Acts' which includes a claim to loss relief. It does not apply to elections, for example for herd basis. It may in practice be taken as including a claim to capital allowances given in taxing the farming trade for periods where the pre-SA rules apply. Thus, when claiming averaging under the pre-SA rules, it is open to the farmer to submit a revised claim to capital allowances in order to fully use her or his personal allowances. This point is no longer relevant under SA as capital allowances form part of the profits averaged.