Assessment of Farm Income

VEA→

Usual assessment methods would have applied

Income from a farming business would have been determined using the same assessment methods used when determining income for income test purposes.

Sole trader

Where the farm business was run by the farmer as a sole trader, farm income included the net profit or loss made in each year. The net profit would have been adjusted for any tax deductions claimed that were not allowable reductions from business income.

Partnerships

Where the farm business was run by the farmer as a partner in a partnership, farm income included the farmer's (and if a member of a couple, their partner's) share of the net profit or loss made in each year. The net profit would have been adjusted for any tax deductions claimed that were not allowable reductions from business income for VEA purposes.

Trusts or private companies

Where the farm business operated through a trust or private company, an assessment of actual income distributions, dividends, directors fees etc would need to be made.