Acting for Farmers & Landowners - Latest Guide to the Tax Risks & Traps

Introduction

Farm tax is a very specialist area dealing with high value assets. The tax risks are high in quantum and complexity. Matters can be complicated by the desire for farmers to dispute amongst themselves. There are often a variety of alternative tax routes to follow and it's very important to record the ‘tax route not taken’.

With the limited company advantages of the super deduction at 130% and research and development at 130%, the interaction of the limited company must be considered. The answer to utilising the current farm tax relief advantages together with the needs of various farming partners and family members is the route of ‘full farm succession planning’ to incorporate updated partnership agreements and wills. Where aspect tax planning is undertaken there is greater negligence tax risks.

This 30-minute webinar aims to explain the headline concerns and action strategies.

What You Will Learn

This webinar will cover the following:

• The need for written instructions and clear engagement letter/terms of business
• Lessons learnt from the PI case of Mehjoo v Harben Barker
• The problems caused by the implied terms of a retainer/ongoing tax advice
• The added quantum of risk with development ‘hope value’ and overage agreements
• The complexities of equine diversification - studs, liveries and the Vigne case
• The risks of lifetime transfers - the risk of losing current tax advantage
• The need for a partnership agreement- 100% v 50% BPR - land capital account
• Binding independent legal, tax and accounts advice
• The dispute cases of Guest, Ham v Bell, Horsford
• The need to identify the base cost for CGT
• Weak mixed rate SDLT cases - need for evidence of commercial use
• HMRC always want to see the business plan and enterprise accounts
• Protection of the Larke v Nugus statement and robust will files v intestacy
• Retired partner with capital - retirement strategy and the LPA
• The Apart Hotel case - the need for a portfolio of evidence for all tax relief claims
• McLean and others v Thornhill - tax avoidance schemes

This webinar was recorded on 7th December 2022