Tag Archives: monday
RPT-USDA Offers $181 mln To Help Build Advanced Biofuel Refineries
Mon Oct 21, 2013 2:11pm EDT Oct 21 (Reuters) – The U.S. government on Monday announced $181 million in loan guarantees to build commercial-size refineries making advanced biofuels or to retrofit existing biorefineries to produce the cleaner-burning renewable fuels. Since 2008, the Agriculture Department has provided $684 million through the Biorefinery Assistance Program to support projects in eight states. Applications for the latest round of funding are due by Jan. 30. “This financing will expand the number of commercial biorefineries in operation in the United States that are producing advanced biofuels from non-food sources,” said Agriculture Secretary Tom Vilsack. USDA announced the funding at a time the federal mandate for biofuels is under challenge in Congress and in the bureaucracy. The Environmental Protection Agency has said it is considering whether to scale back the mandate, now dominated by corn-based ethanol. Advanced biofuels, made from plant materials like wood and grasses and producing fewer greenhouse gases than current fuels, were expected to match corn ethanol by the end of this decade but have been far slower to develop than expected. The Advanced Biofuels Association lists more than 200 plants, including biodiesel makers. Valero Inc. and Darling International are partners in a plant that opened in June to produce 137 million gallons a year of renewable diesel from animal fats and cooking oil. Michael McAdams, head of the biofuels trade group, said the offer of loan guarantees would be “incredibly helpful” to smaller companies that want to expand production. One maker of cellulosic biofuels, KiOR Inc., announced $100 million in financing on Monday to build a second refinery at Columbus, Mississippi, to convert wood chips into fuel. The original refinery produced 357,532 gallons of gasoline, diesel and fuel oil from Jan. 1 to Aug. 31. KiOR has a target of producing 13 million gallons a year at the plant. Continue reading
When Should You Use BPR To Plan For IHT?
By Tony Mudd on Monday, 7 October 2013 Business property relief isn’t the right tool for everyone planning their inheritance but it’s well worth a look to see whether you might benefit from it. It has occurred to me that anyone who read my previous article Beware Government Bearing Gifts may have been left with the view that investing in businesses that qualify for Business Property Relief (BPR) brings with it such inherent liquidity and investment risks as to make it an area to be avoided. To use an old and often quoted adage that it would be akin to letting the tax tail wag the investment dog. If this was indeed the case then it would only be appropriate to outline the counter arguments; specifically the value BPR qualifying investments outside of an Individual Savings Account (ISA) wrapper can have. It is the case that Alternative Investment Market (AIM) shares qualifying for BPR offer a narrower range of investment options than the wider BPR investments available outside of an ISA wrapper and by definition lower diversification and higher investment risk. However I am going to look here at the tax benefits and the type of investors or situations where this type of investment may be of particular relevance to make my point. To remind readers, investments qualifying for BPR provide the simple but straightforward benefit of being exempt from Inheritance Tax (IHT) once they have been held for two years provided they remain in the hands of the investor at the point they become chargeable ie lifetime gift into trust or on death. Elderly investors or those in poor health Many IHT solutions either require investors to survive a period of seven years or rely on them being able to arrange life assurance. For elderly investors or clients in poor health the fact that the planning involving BPR is effective within two years and/or does not require medicals can be of significant value. Attorneys and deputies Where an investor loses mental capacity their financial affairs will either be dealt with by an attorney or deputy. In these circumstances due to the limitations imposed in relation to lifetime gifts (with the possible exception of Continuing Powers of Attorney in Scotland), the ability for the attorney to invest in the individual’s own hands in a BPR qualifying investment may be the only inheritance tax planning option available. Existing trusts Where the existence of trust assets will trigger a liability to IHT the selection of BPR assets as a trust investment can provide significant tax planning benefits. A liability to IHT could arise in respect of Interest in Possession Trusts or Immediate Post Death Interest Trusts on the death of a beneficiary or in respect of Discretionary Trusts for periodic (10 yearly) charges. Business owners Many investors who also run their own business will be well aware that the business itself offers the perfect shelter from IHT. The reason for this is that the business, assuming it is a trading entity, will qualify for BPR. However if and when the business is ultimately sold the protection from IHT will be lost. Through the use of BPR investments not only does this not need to be the case but the normal two year qualification will also not apply. BPR investments can also be used by husband and wife or those in civil partnerships where only one party needs to survive the two years that the investment is held and in combination with appropriately drafted wills whereby in some circumstances the tax advantages can be doubled. As with AIM shares qualifying for BPR in ISAs BPR investments outside of an ISA wrapper is not a panacea but for some clients in the right circumstances, well worth a look. Continue reading
Investors Continue To Boost Land Prices
Robyn Vinter Monday 07 October 2013 Investor demand is continuing to help drive up the price of farmland, according to Knight Frank. The average value of English farmland rose by 4% in the third quarter of the year to £6,678/acre – a new record high – according to the latest results of the firm’s farmland index. “We are seeing a steady increase in the number of enquiries from individuals and funds, both in the UK and overseas, looking to diversify their investment portfolios,” said Tom Raynham, head of Knight Frank’s agricultural investments team. “Large blocks of good arable farmland, preferably over 1,000 acres, are most in demand,” he said. Capital growth is a key driver, according to Mr Raynham, with prices having risen by 222% in the past decade and predicted to rise by at least 5% annually over the next three years. Investors, however, were also looking more closely at annual yields, he added. “People start to get very interested if there is also the potential for additional income from the likes of renewable energy or a diversified farm business.” A resurgence in agricultural research is also adding to the sector’s investment potential, he said. Continue reading
