Agricultural & Business 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 (BR) and Agricultural Relief (AR) on a diversified farm and estate.

The advanced 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 AR and BR around the drop in AR/BR 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 AR and BR 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 AR/BR understanding and planning
• Lifetime gifting as part of maximising the current 100% BR and AR
• Partnership property and Trust Registration (TRS) - protecting BR at 100% on £1million
• The protection of a well drafted partnership agreement for maximising BR (and AR) and giving understanding as part of the planning moving forward
• The role of the executor in AR/BR understanding and paying IHT liabilities
• The executor’s need to understand the approval and signing of the IHT 400 including AR/BR 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 AR/BR 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 AR/BR maximisation and importance of quality for IHT 400
• Increased spotlight on Woodland Relief with 50% AR/BR
• Heritage farm property used in a farming operation - increased focus
• Achieving 100% BR 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 BR cases - Butler, Tanner, Kingsworthy Meadow Fisheries, Vigne and Graham - protection planning “Tanner Hotel”
• Reviewing AR on farm workers cottages and the role of the AST (assured short hold tenancy) - total review of the future of cottages
• The availability of AR for the stud and BR for other ‘non-agricultural’ equine activities - considering the interaction
• Techniques in completing the agricultural and equine elements of the IHT 400 to strengthen AR and BR claims with evidence and case history
• IHT penalties - the risk of unsupported/incorrect claims for AR/BR
• PI protection on the large quantum of AR/BR claims - the Mehjoo case and the ‘need for specialist advice’ as appropriate