Farmers - Tax first 5 years

Farmers - Tax first 5 years

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A client of mine runs a farm as a partnership and wants to end the partnership and become self employed. She told me that when a farm makes a loss in the first 5 years a tax rebate can be claimed against any PAYE that she had paid during the year.
Her question is will she get another five years by changing from a partnership into sole trader?
This is not the motivation for changing to a sole trader. That decision has been made and the logistics are being finalised. It was just a question of understanding the rules.
I thought that a partnership would be a different 'entity' from the individulas as far as HMRC are concerned and therefore she would be able to claim back any PAYE paid during her first 5 years as as sole trader.

Any advice welcomed.

Steven Leather

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