Trust Registration Service - The Latest Guidance for Farming Partnerships

Introduction

There are still many farming partnerships that have not yet registered partnership property that is held in trust with the TRS . There are also many farmers and farm advisers who do not understand the concept of ‘partnership property being held in Trust’ and have therefore ignored the various warnings.

The initial HMRC guidance was possibly misleading with a focus on partnership agreements rather than an explanation of why the registration and to whom the registration applied. All partnership property, by definition is held in Trust but there are some exemptions from the registration.

As a result, HMRC have taken a soft approach to penalties, however, with the one year anniversary of the start of registration partnership property long since passed, there is a strong need to check the status of every farming partnership now.

A large number of farm advisers acting for agricultural partnerships have rather avoided the subject of TRS registration for partnership property and have not made full warnings to clients, especially with penalties looming.

This virtual classroom seminar explains a working strategy for those advisers who are behind with registration and uncertain of some confusing areas.

The session looks at the immediate need for understanding, warning clients and registering with TRS as applicable and taking the advantages of the evidence of 100% BPR (Business Property Relief) for inheritance tax.

What You Will Learn

This live and interactive session will cover the following:

• How and why is farm partnership property held in trust?
• Partnerships cannot legally own property - hence the need for the trust
• Legal title v beneficial interest - the need for legal clarity
• The role of the partnership agreement in defining the trust
• The need to urgently clarify/update the partnership agreement
• Partnership property without a partnership agreement
• Do farmers still need a partnership agreement?
• The need to register partnership property held in trust with TRS
• The TRS registration advantage of the 100% BPR
• 100% BPR protection over 50% BPR
• Does the TRS registration discourage partnership agreements?
• Post 1 September deadline - action plan
• Complex varying property ownership within partnership - more than one registration?
• Will TRS registration encourage more incorporation with super deduction and R&D?
• Will TRS registration discourage move from sole trader?
• Disadvantages of incorporation of the family farm
• Disadvantages of sole trader for the family farm
• The need for TRS registration to be part of full farm succession planning
• Accounts disclosure of the trust and land capital accounts
• Accounts disclosure with no partnership agreement
• The need for good notes to the accounts for disclosure clarity

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.