BIM73170 - Farmers' averaging: adjustments to assessments

Any adjustments necessary to any assessment, whether on farming profits or other income, or to any repayment or relief, as a result of an averaging claim, may be made even if those assessments are otherwise final and conclusive.

The farm profits obtained by full averaging or by a marginal adjustment become the profits for all purposes of the Income Tax Acts. Thus any reliefs, assessments etc depending upon total income (for example, loss relief under ICTA88/S380 Class 4 NIC, retirement annuity relief and age allowance) may need to be recalculated as a result of the averaging (see BIM73160).