Development Land & Farming - A Tax-Planning Guide in One Day

Introduction

This full day seminar will consider how to tax plan for farm development land in terms of both inheritance tax and capital gains tax for farmers. The course covers tax planning around small and large farm developments.

It will also consider rollover and business asset disposal relief.

What You Will Learn

How to move forward with a farming client with potential development land for housing and renewable energy. The need for early tax understanding of the quantum of potential development, the complexity of the tax advice required and need to incorporate into full farm succession planning. The need to work with quality professionals as a team with a holistic approach to maximising both financial return and tax reliefs whilst minimising aggravation. Looking at the latest planning policy in the context of farming together with the impact of the Agriculture Act and the current stance on IHT and CGT.

• Increased potential for small farm developments, brownfield sites
• The continuing need for houses
• Purchase of carbon credits and tree planting
• The drive and need for early tax planning at every angle of farm development projects
• The Ham v Bell case - impact on definition of partnership ownership for tax planning
• The importance of partnership property of IHT, CGT and general understanding in the context of development land
• The range of development values and tax planning opportunities - consideration of the impact of the 20% rate of CGT v BADR drop of limit to £1 million
• The consortium land pooling and cross options with multiple ownership
• Impact on farm buildings and bare land - no room for 'redundant' usage for farm business tax relief
• The Blaney case and BATR - 'just for pleasure' not enough for tax planning
• The equine loss and farm loss claims and impact on BPR commerciality for development land
• The need for legal agreements to protect all tax planning
• The impact of Brexit, Agriculture Act etc and potential loss of farm subsidies to commercial need for development and protection of development land tax reliefs
• Equalisation agreements and tax planning around pooling
• Achieving combined goals of maximising IHT relief and CGT relief
• Grazing agreement without activity - risk to tax relief on development land - impact of the McCall and Gill cases
• Weak contract farming agreements - risk to business tax reliefs on farm development land
• The need for 'pre transaction' not 'post transaction' tax planning
• Foster - valuation of hope value - "top down" "bottom up"
• The importance and risks of the executor with development risk and values
• Rollover into farm improvements
• Deferred consideration - income tax v CGT
• Turning farmland in the village green as part of deal under the Commons Act 2006
• Farm storage and services to achieve potential and tax planning, e.g. trading elements of the caravan and the hamper
• Farming disputes (James, Ham, Davies, Guest) and the impact on development land agreements
• Overage and slice of action schemes
• Success on DIY liveries and un-serviced farm diversification - the positive for development land - Vigne Upper Tribunal
• The promotion agreement and tax protection - beware the unusual
• Non-agricultural use for brownfield sites - advantages for development
• CGT base cost identification
• The rollover buyer
• The impact of principal private residence relief on development land
• The importance to ensure registration of farmland at early stage