1
Type
Speaker
CPD Hours Level
Seminar 6 IntermediateInformation
Accreditation Information
SRA Competency B
VIEW FEEDBACK
'One of the best courses I have attended since qualifying some years ago'

Introduction

This full day course is designed to give delegates a full overview of the tax risks and negligence traps currently facing the farming sector, with a particular focus on the role of the professional advisor in an ever-changing industry and looking at these problems in the context of a farm tax update.

The high achievement of farmland values has increased the quantum of risk and the complexity around acting for farmers and the lack of clarity in some areas can cause problem and debate with HMRC. In this highly practical seminar delegates will be provided with a summary of the common negligence traps that exist in acting for farmers and landowners incorporating development land. With increased values there are attacks from every corner, e.g. ‘stealing siblings’, threats of ‘undue influence’, and consideration of testamentary capacity.

The course will also look at the risks of the Agriculture Bill and the proposal of “public products” - access to farms and the countryside.

In addition, it is understood that only one third of farming partnerships have Partnership Agreements in place, and the majority are out of date. There are large tax problems of owning the farm in the Ltd Company and the result is that the majority of the UK farming industry trades through partnerships, and thus it is vitally important for the professional advisor to understand the significance of having, or not having, these agreements in terms of both risk and tax.

This course will also therefore look at all tax planning angles of farm partnerships, and how to ensure robust farm succession planning around the interactions around the different legal structures and tax risks. It will also explore the dangers of acting without a written partnership agreement and what should happen in the future if there is a dispute or a partner leaves or dies. A robust agreement will define the position on partnership assets and the need for an agreement to be supplemented by an appropriate Will and LPA for each partner. It is essential that there is robust legal protection.

What You Will Learn

This course will cover the following:

Avoiding the risks and negligence traps

  • Mehjoo v Harben Barker - the need for specialist advice
  • Putting protection in place for the famer and the professional: the importance of the confirmed instructions
  • The risks of claims on farm estates under Inheritance Act 1975
  • The need for the fact find - the comparison of the non-dom significance and the importance of the permanent file for understanding the farm operation
  • The dangers of 'squabbling siblings' and the significance of 'implied terms' - succession
  • The elderly farmers not prepared to pay for advice - putting safeguards in place
  • Capital allowances and repairs ensuring they tie into succession planning (Pratt, Hopegear and Cairnsmill) - the risk of the farm stealing from other siblings
  • A mix of advisors and the need for a clear definition of roles: Memorandum of understanding - clarity of who is responsible for the separate elements of advice
  • The importance of legal agreements in place: the Will and risk of intestacy, disputes and loss of tax reliefs
  • The grazing agreement, the deed of variation, contract farming and the partnership agreement
  • Farmland values: Chadwick, the quantum of risk on increased values of development land - warnings, Palliser and hope value
  • Farm losses - French, Silvester, Scrambler, Erridge
  • The IHT400 - the importance of the Accounts information
  • The problems of the horse and loss of agricultural status and tax diversification
  • Diversification - protecting the risks. FHL cases of Nott, Pawson, Green, Ross and success of Graham
  • Weak contract farming agreements - consider farming in hand - Arnander
  • Weak grazing agreements - take back in hand (McCall and French)
  • HMRC attacks ono grazing agreements
  • VAT on liveries, partial exemption, artificial separation, links to Vigne (UT success)
  • The IHT and CGT weaknesses of the FBT - have incorrect FBTs been identified
  • Vigne and enhanced liveries (emphasis on service), success of Upper Tribunal
  • The 'stand alone' company
  • The farmhouse risk - occupation - the diary of hours spent
  • Farmers retiring - 'retired farmer' and the death certificate - is the tax planning in place
  • The problems of CGT v IHT and the risk of protecting one and risking the other (associated disposals v partnership property)
  • Proactive farm tax planning: the risk of usage of 'pushing the client'
  • The aggressive stance by HMRC: extra tax equals a PI claim
  • Impact of Brexit, the Agriculture Bill and BPS planning
  • 20% rate of CGT v entrepreneurs relief (ER)
  • Allen and Moore cases for ER
  • Johnson and the non-monetary value
  • Development - slice of the action and overage
  • Caravan storage and the need for services - the “hamper” and lavish services
  • Development land and NPPF2
  • Protecting cottages and let activity with Balfour
  • The risk of post transactional tax planning

Partnership Agreements

  • The importance of farming partnership agreements with increased farm values and farming family disputes
  • Partnership agreements - the problems of weak drafting 'per Accounts' - Ham v Ham - fair value
  • Protection of capital and income rights
  • Link to Wills and other legal agreements
  • Assets used in the partnership - 100% BPR as opposed to 50% BPR
  • 'In or Out' of the balance sheet for partnership property
  • CGT v IHT for overall planning
  • Associated Disposals and development land - the withdrawal advantage
  • Entrepreneurs relief - Withdrawals v cessation
  • Retirement provisions and protection
  • Death - What happens to partnership interest and assets? Protection re s 33 PA 1890
  • Bringing in family members
  • Corporate partners - where now post loss of AIA for mixed partnerships
  • AIA at £1 million for 2 years - planning
  • The drawbacks of incorporation and ownership - ATED, Minority shareholdings and APR
  • Disputes - Ham v Ham, Davies v Davies ('Cowshed Cinderella'), James v James
  • Protection of the beneficial interest
  • Market value v historic cost for incorrect drafting
  • Ham v Bell - the impact of the Accounts as evidence
  • CGT base cost protection
  • Protection through identifying conflicts of interest
  • Capacity of the Will, the LPA protection and tax planning
  • Maurice and Shirley Bell - the risk of loss of rollover relief
  • Protection through first registration
  • Protection around the land capital account

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Seminar | 10.04.2019

Glasgow | 9:30am - 5:15pm


Acting for Farmers & Landowners - Tax Risks & Negligence Traps

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Glasgow
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Seminar | 24.05.2019

Bristol | 9:30am - 5:15pm


Acting for Farmers & Landowners - Tax Risks & Negligence Traps

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24
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Bristol
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Seminar | 20.06.2019

London | 9:30am - 5:15pm


Acting for Farmers & Landowners - Tax Risks & Negligence Traps

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Jun
20
2019
London
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Seminar | 21.06.2019

Southampton | 9:30am - 5:15pm


Acting for Farmers & Landowners - Tax Risks & Negligence Traps

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Jun
21
2019
Southampton
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Seminar | 01.07.2019

Cambridge | 9:30am - 5:15pm


Acting for Farmers & Landowners - Tax Risks & Negligence Traps

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Jul
1
2019
Cambridge
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Seminar | 17.07.2019

Leeds | 9:30am - 5:15pm


Acting for Farmers & Landowners - Tax Risks & Negligence Traps

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17
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Leeds
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Seminar | 16.09.2019

Cardiff | 9:30am - 5:15pm


Acting for Farmers & Landowners - Tax Risks & Negligence Traps

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16
2019
Cardiff
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Seminar | 17.09.2019

Birmingham | 9:30am - 5:15pm


Acting for Farmers & Landowners - Tax Risks & Negligence Traps

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Sep
17
2019
Birmingham
9:30am - 5:15pm
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Plan Information
£216
Season
Ticket Information
£240
Standard
£480
Group bookings
Discounts are available for multiple places and if you have 5 or more people interested in this course and would like to discuss holding it in your area or on an in-house basis then please email us at information@mblseminars.com
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