Agricultural & Business Property Relief - Beyond the Basics

Introduction

This full day in-person seminar is aimed at private client solicitors, farm accountants, tax advisers and land agents. It will consider the maximisation of the interaction of Business Property Relief (BPR) and Agricultural Property Relief (APR) on a diversified farm and estate.

The intermediate 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 APR and BPR around the drop in APR/BPR to 50%, especially ELMs (Environmental Land Management schemes). The need to fund IHT liabilities with possible sales of assets or increased borrowings. The session will incorporate the Budgets of 2024 and 2025. Tax planning to mitigate the IHT liabilities will be considered from many angles.

What You Will Learn

The course will cover the following:

• The importance of farm values for APR and BPR planning and the need for a strong quality probate valuation - impact of Foster case on “hope value” and protection - the value will impact on the liability
• The basis of hope valuation s.160 following Foster - top down v bottom up
• Land registration as part of APR/BPR understanding and planning
• Lifetime gifting as part of maximising the current 100% BPR and APR
• Partnership property and Trust Registration (TRS) - protecting BPR at 100% on £1million
• The protection of a well drafted partnership agreement for maximising BPR (and APR) and giving understanding as part of the planning moving forward
• The role of the executor in APR/BPR understanding and paying IHT liabilities
• The executor’s need to understand the approval and signing of the IHT 400 including APR/BPR Claims and all valuations
• The Estate of Thomas Gill, the farmhouse and the agricultural licence
• The risk of a Larke v Nugus statement request, evidence of APR/BPR verification and planning at the will drafting stage - all wills to be updated post 30 October 2024
• Using the power of the LPA (Lasting Power of Attorney) as an IHT planning tool as well as protection
• The role of farm accounts as evidence - post Ham v Bell for APR/BPR maximisation and importance of quality for IHT 400
• Increased spotlight on Woodland Relief with 50% APR/BPR
• Heritage farm property used in a farming operation - increased focus
• Achieving 100% BPR on let cottages - Balfour and Farmer - OTS suggestion of 80% trading % - the spectrum of trading and not trading s.105(3)
• New s.105(3) specific BPR cases - Butler, Tanner, Kingsworthy Meadow Fisheries, Vigne and Graham - protection planning “Tanner Hotel”
• Reviewing APR on farm workers cottages and the role of the AST (assured short hold tenancy) - total review of the future of cottages
• The availability of APR for the stud and BPR for other ‘non-agricultural’ equine activities - considering the interaction
• Techniques in completing the agricultural and equine elements of the IHT 400 to strengthen APR and BPR claims with evidence and case history
• IHT penalties - the risk of unsupported/incorrect claims for APR/BPR
• PI protection on the large quantum of APR/BPR claims - the Mehjoo case and the ‘need for specialist advice’ as appropriate