Development Land & Farming - A Tax Planning Guide - Live at Your Desk

Introduction

This live broadcast session will consider tax planning around farm development land in terms of inheritance tax and capital gains tax for farmers with links to VAT, income tax and corporation tax. The session will cover tax planning around small and large farm developments post the loss of BPS and moves to farming for the environment. For many farmers small developments can give a much-needed contribution to profits but the rise in building costs must be considered. The sale of farm cottages that are difficult to let and replace with new builds etc mindful of too many investments under Balfour.

The session will also consider rollover and business asset disposal relief (BADR) with the drop to £1 million limit and the emergence of the “rollover buyer”. There will be links with the need to incorporate farm development (large and small) tax planning into full farm succession planning.

Find out how to move forward with tax protection and planning with a farming client with potential development land for housing against a background of massive changes to farming.

What You Will Learn

This live and interactive 3 hour session will cover the following:

• Planning Permission changes - Permitted Development Rights
• The impact of the reduction of the £10million limit for BADR on all farm development projects to £1million
• The role of incorporation tax planning with R&D advantages - impact on farm development
• Residential Property Developer Tax (RPDT) and s.106
• The impact of “farming for the environment” and loss of BPS to commercial farm operation and protection of development farmland tax reliefs
• CGT loss relief on the value of BPS entitlements
• Equalisation agreements and tax planning around pooling
• Grazing agreement without activity - risk to tax relief on development land - Consideration of the Gill case - the “working farmer”
• Weak contract farming agreements - risk to tax reliefs on development land especially focus post the Rock Review
• Foster - valuation of hope value - ‘top down’ ‘bottom up’
• Rollover into ‘AIM’ investments and farm improvements
• Graham, Vigne, Firth and Butler - impact of lavish services to protect development of diversified businesses s105(3)
• The important on the “focus on trade” on all developments tax planning
• Overage, slice of action schemes and opt to tax considerations
• The promotion agreement v the option agreement and tax protection
• CGT base cost of development land identification and planning
• Improving the rollover relief opportunities through trading (the rollover buyer)
• Development of principal private residence relief and the garden - Phillips
• CGT PPR and the knock down - the Lee case
• Budget 2023 and Autumn Statement 2023 especially on farming for the environment and delay in consultation until Spring 2024
• Sale of Carbon Credits and “green washing” - purchase by developers
• Developing listed building - VAT negative of Richmond Hill
• Mixed rate SDLT - How Developments UT and constant stream of cases
• Development of buildings - plan ahead for VAT - Blaenau Bach Farm and complexity of zero rate for new builds, opt to tax etc

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.