According to the High Court in the recent case of Bowen and others v Isle of Wight Council (Rev1)...
The future of the farm is often dependent upon successful succession planning providing an entry route for the younger generation into the industry. Advice needs to be bespoke to take into account the interrelationship of the farming business and the farming family.
Developing a close working relationship with your professional advisors will allow you to achieve long term succession planning, preserving your business assets for the next generation. Good succession planning will also allow the aging partner to plan for retirement.
Essential as succession planning is, it comes with a raft of complex legal and financial Tax implications of potential decisions. Costly and lengthy disputes can be the pitfalls for those who do not take expert legal advice.
We can advise you on Capital Gains Tax, Inheritance Tax and the appropriate Reliefs that may apply to your planning. The value of agricultural land has been steadily rising for many years and Inheritance Tax is highly likely to affect your estate when you die. Diversification, development opportunities and the desirability of Farmhouses are imparting on the availability of Agricultural Property Relief. Agricultural Property Relief is constantly under review from HMRC, what ‘worked’ for the last generation may not ‘work’ for the next generation. We can assist with alternative tax strategies.
We can help to effectively structure your business to take full advantage of Tax Relief and Allowances available at any given time.