The chancellor announced changes to farmers averaging; highlighting that from April 2016 the period over which they can average will be increased from the current two year years to five years. The government states that it will engage with stakeholders later in the year on the detailed design and implementation. 

The current rules relating to the averaging profits of farmers and creative artists are in Income Tax (Trading and Other Income) Act 2005 (ITOIA 2005), Part 2 Chapter 16 s.221 to s.225. Farmers and market gardeners in the UK may obtain relief by averaging the profits of consecutive years. 

You can find more about the current rules including examples on our website