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Nothing is certain but death and taxes...

A lot of farming families are dominated by the specter of Inheritance Tax.  This is no accident, as the average age of the controlling farmer in the UK is 59, and many are above the age of 70.

It's a strange (and often unfair) circumstance farmers find themselves in when they have worked hard all their lives to keep the family farm going, and through no fault of their own, just plain old age, they cannot give as much as they used to but are held to the work sometimes so that they can secure IHT relief that would be taken from them if they took a well earned retirement.

There comes a time when you need to review your position, see what the tax bill would be if you simply did what was right rather than for the taxman, and see whether that price can be mitigated or whether it can be covered in other ways.

"I have had so many conversations with farmers where they would love to stop, and their children would love it too, but that dreaded tax bill impacts on what should be some time to rest"

Speak to us if you would like to review your circumstances, understand what your IHT bill might be and what you can do to mitigate it.

All conversations about any land will include business property relief (BPR) and agricultural property relief (APR). We know that you will have some familiarity with these concepts as you cannot avoid them as a farmer.

Business Property Relief (BPR)

Reduces the gain on the full value of the property by 100% if available. Conditions must be met.

Agricultural Property Relief (BPR)

Reduces the gain on the agricultural value of the property by 100% if available. Conditions must be met.

Planning for IHT will focus around these two reliefs.  First we will see whether APR is sufficient to cover your assets and often it is, but then we need to consider BPR to capture other assets, for example where you have development potential on some land that puts its value above agricultural value.

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