Agriculture · 2026 edition
The UK Farmer's Guide to Asset Finance
Written for UK farm owners, farm managers and rural accountants, this guide translates the tax and cash-flow mechanics of asset finance into the language of real farming decisions. It walks through the three structures we use most often on farms, shows how they interact with the Annual Investment Allowance and full expensing, and sets out the payment shapes that fit around a single-harvest income year.
Chapters written from real deals.
Every chapter is drawn from work we've done with UK businesses — anonymised, but the numbers, structures and outcomes are real.
Why structure matters more than headline rate
The cheapest quoted rate rarely produces the lowest true cost. This chapter compares three real deals we structured last season and shows why matching payments to farm income delivered a stronger balance sheet than shopping on rate alone.
AIA, full expensing and the machinery decision
A partnership, sole trader and limited company each face a different tax picture on the same £180,000 combine. We walk through the numbers with a rural accountant's commentary and show where HP wins on tax and where a finance lease is the smarter home for the same asset.
Payment shapes for a single-harvest year
Seasonal, stepped, deferred, balloon — and when each is appropriate. Includes a worked example for an arable farm structuring a £340k tractor and drill package around a September-only income cycle.
SFI 2024 capital items alongside asset finance
How to layer capital grants (SFI, Countryside Stewardship, Farming Equipment and Technology Fund) with HP and finance lease without breaking grant conditions. Includes a decision tree for the most common overlaps.
Refinance: releasing capital from paid-down kit
The most overlooked lever on a UK farm. We show how refinancing a fleet of paid-off machines released £215k of working capital for a Lincolnshire mixed farm at a lower cost than an overdraft extension.
Written for the people making the decision.
- 01Owner-managed arable and livestock farms
- 02Farm managers on estates and rural portfolios
- 03Rural accountants advising farming clients
What you'll walk away with.
- 01AIA and full expensing explained for partnerships, sole traders and Ltd companies
- 02Seasonal, stepped and balloon payment structures matched to harvest income
- 03How SFI 2024 capital items sit alongside HP and finance lease
- 04Decision framework: when to buy, when to lease, when to refinance
Other guides you might find useful.
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