Agricultural & Business Property 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 Property Relief (BPR) and Agricultural Property Relief (APR) on a diversified farm and estate post the first Labour Budget of 30 October 2024 following the publication of draft legislation.

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 only 50% APR and BPR from 6 April 2026, subject to the 100% on the first £1million.We consider lifetime gifting and the need for meticulous planning. 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 tax guidance of the working group. There have been more tribunal cases to consider on s.105(3), e.g. Tanner. We look at the suggestion of the Tanner Hotel.

What You Will Learn

This intermediate live and interactive broadcast will cover the following:

• The importance of farm property values for APR and BPR 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” for potential development land s.160 following Foster - top down not bottom up
• Land registration as part of ownership understanding for APR/BPR planning
• Partnership property and the need for legal clarity = 100% BPR v 50% BPR, 100% BPR on the first £1million
• Partnership property and Trust Registration (TRS) helps 100% BPR evidence
• The protection of a well drafted partnership agreement for maximising BPR (and APR) - farmers are focused and want help post the Labour Budget
• The role of the executor in APR/BPR understanding and planning for probate interaction and lifetime transfers and payment of IHT liabilities and transfers
• The Estate of Thomas Gill, the farmhouse and the grazing agreement - APR and BPR success with other operations
• Post 30 October 2024 we are “talking about a revolution” - all Wills have to be updated with so many changes, especially to potential tax liabilities
• The risk of a Larke v Nugus statement request, evidence of APR/BPR 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 APR/BPR planning tool
• The role of farm accounts as evidence of ownership - post Ham v Bell for APR/BPR maximisation - there are incorrect farm accounts in circulation
• Lifetime gifting to protect APR/BPR following the 30 October 2024 Budget - consideration
• Heritage farm property revival as used in a farming operation with 50% APR/BPR around GROB (Gift with Reservation of Benefit) and the case of Chugtai
• The difference between 100% APR and 50% APR - the AHA (Agricultural Holdings Act) Tenancy 1986 and the FBT respectively - AHA stay at 50% but can’t be used for the £1million 100%
• Achieving 100% BPR on let cottages - Balfour and Farmer - OTS suggestion of 80% trading % - the spectrum of trading and non trading protection - s.105(3) IHTA 1984
• Farm trading cases, e.g. Griffiths, Balnakeil, Blaenau Bach Farm, Babylon Farms, Heather Whyte and impact on the APR/BPR claims
• Reviewing APR on farm workers cottages and the role of the AST (assured short hold tenancy) and the AOC (Agricultural Occupation Condition) - valuation concerns and possible disposal
• The Kingsworthy Meadow Fisheries case and s.105(3) impact
• The case of Tanner furnished holiday accommodation (FHA) with 5 units and staff denied. The trade needs restructuring not moving over the investment line - “Tanner Farm Hotel”?
• Rachel Reeves allowing onshore wind farms and houses for development - BPR on hope value a worry
• But development opportunities can help fund future IHT liabilities and end of life care!
• However, the compulsory purchase of farmland without hope value presents a worry, as does the valuation
• The availability of APR/BPR for the stud and other ‘non-agricultural’ equine activities - APR applies from April 2025 to ELMs activity
• Review of 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 APR and BPR claims with evidence and case history
• IHT penalties - the risk of unsupported/incorrect claims for APR/BPR - risk management
• PI protection on the large quantum of APR/BPR claims - the Mehjoo case and the ‘need for a specialist’ on complex farm tax
• All farm 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.