Agricultural & Business Relief - Beyond the Basics for Accountants - Live at Your Desk

Introduction

This 6 hour session (split across two days) is aimed at accountants and tax advisers. It will consider the maximisation of the interaction of Business Relief (BR) and Agricultural Relief (AR) on a diversified farm and estate post the first Labour Budget of 30 October 2024.

The advanced level session will outline the need for IHT planning NOW for the farm business, especially with the move away from pure farming, and considerations around the implications of claims for only 50% AR and BR from 6 April 2026, subject to the 100% on the first £1million. Focus is on the impact of ELMs (Environmental Land Management schemes) and the need to “fill the subsidy gap” with profitable diversification/rewilding and/or development projects including carbon credits whilst still awaiting the results of the working group.

What You Will Learn

This advanced live and interactive broadcast will cover the following:

• The importance of farm values for AR and BR planning and the need for a strong quality probate valuation, where values will impact on 50% tax from April 2026
• The basis of hope valuation s.160 following Foster - top down v bottom up
• Land registration as part of ownership understanding for AR/BR planning
• Partnership property and the need for legal clarity = 100% BR v 50% BR, 100% on the first £1million
• Partnership property and Trust Registration (TRS) helps 100% BR
• The protection of a well drafted partnership agreement for maximising BR (and AR) - farmers are focused and want help
• The role of the executor in AR/BR understanding and planning for probate interaction and lifetime transfers and payment of liabilities
• The Estate of Thomas Gill, the farmhouse and the grazing agreement - AR and BR success with other operations
• Post 30 October 2024 we are “talking about a revolution” - all Wills have to be updated with so many changes
• The risk of a Larke v Nugus statement request, evidence of AR/BR verification and planning at the will drafting stage to fully integrate with succession planning - risk protection
• Using the power of the LPA (Lasting Power of Attorney) as an AR/BR planning tool
• The role of farm accounts as evidence of ownership - post Ham v Bell for AR/BR maximisation - there are incorrect accounts there
• Lifetime gifting to protect AR/BR following the 30 October 2024 Budget
• Heritage farm property revival as used in a farming operation with 50% AR/BR
• The difference between 100% APR and 50% APR - the AHA (Agricultural Holdings Act) Tenancy 1986 and the FBT respectively - AHA stay at 50% but for £1million
• Achieving 100% BPR on let cottages - Balfour and Farmer - OTS suggestion of 80% trading % - the spectrum of trading and not trading
• Farm trading cases, e.g. Griffiths, Balnakeil, Blaenau Bach Farm, Babylon Farms, Heather Whyte and impact on the AR/BR claims
• Reviewing AR on farm workers cottages and the role of the AST (assured short hold tenancy) and the AOC - valuation concerns
• The Kingsworthy Meadow Fisheries case and s.103(3) impact
• The cases of Tanner, Butler, Vigne and Graham and furnished holiday accommodation (FHA) with 5 units denied. Needs restructuring not moving over the line
• Rachel Reeves onshore wind farms and houses for development - BR on hope value for “farmer 80”
• But development opportunities can help fund future IHT liabilities!
• The availability of AR/BR for the stud and other ‘non-agricultural’ equine activities - APR applies from April 2025 to ELMs
• The role of the surviving spouse exemption post Budget 30 October 2024
• Techniques in completing the agricultural and equine elements of the IHT 400 to strengthen AR and BR claims with evidence and case history
• IHT penalties - the risk of unsupported/incorrect claims for AR/BR - risk management
• PI protection on the large quantum of AR/BR claims - the Mehjoo case and the ‘need for a specialist’
• All Wills, Partnership Agreements, succession planning and business plans need revising with the changes - farmers are focused post the revolution

Recording of live sessions: Soon after the Learn Live session has taken place you will be able to go back and access the recording - should you wish to revisit the material discussed.