An Introduction to Farm Partnership Accounts - How to Avoid Common Errors

Introduction

Two major challenges are looming over the agricultural sector: rising disputes and draft legislation that will reduce Agricultural Property Relief (‘APR’) and Business Property Relief (‘BPR’) to just 50% from 6 April 2026.

These developments could significantly impact succession planning and expose clients to greater capital tax liabilities. Many farming clients are still unaware of how vulnerable their current structures might be.

This is where accountants play a crucial role. Protection starts with accounts prepared with a forensic understanding of the business - accounts that farmers not only rely on but fully comprehend themselves. Robust financial records, aligned with the practical realities of the farm, are essential to defend APR and BPR claims and withstand scrutiny from HMRC.

Now is the time to engage proactively with farming clients. Review existing structures, ensure business records support relief eligibility, and help clients future-proof their operations before the legislative changes take effect. Your expertise can make all the difference.

What You Will Learn

This live and interactive course will cover the following:

• The importance of the partnership agreement for accounts preparation
• The role of limited company accounts
• The identification and disclosure of research & development (‘R&D’)
• The need for accountants to understand the use of land capital accounts and all capital accounts
• Full details of all drawings and monies introduced
• Working with overdrawn capital accounts
• Full disclosure of accounting policies
• Full understanding of ownership - legal title and beneficial ownership
• Considerations over values - application of market value v historic cost including notes
• Correct treatment of previous probates and valuations agreed
• Detailed enterprise accounts, especially with new diversification projects
• The need to show trading to protect business tax reliefs
• The need to show agriculture to obtain agricultural tax reliefs
• The need to understand what qualifies as trading and what qualifies as agriculture
• The correct allocation of overheads against the income sources
• The need to show all barter correctly
• The importance of reading loan agreements
• The need to identify gifts v loans
• The correct disclosure of fixed assets - repairs v improvements
• Consideration around the grain silo, the slurry store and farm buildings with function
• The tax efficient disclosure of farm residences and buildings
• Disclosure of carbon credit receipts and all farming for the environment

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.