Capital Taxes on Farms & Estates - An Accountants' Toolkit - Learn Live

Introduction

This 6-hour virtual classroom seminar (split across two sessions) will look in depth at the impact of the two major capital taxes, Inheritance Tax and Capital Gains Tax, on farmers and landowners. Consideration will be given to the impact of Brexit and the Agriculture Act, together with the Budgets 2023 and 2024 and farming for the environment impact. There has been a farming revolution post 30 October 2024 and 50% APR and BPR and lifetime planning has taken focus.

The session will not only look at the legislation but will also examine the relevant case law and consider HMRC’s current approach to collecting tax from the farming industry.

There will be a focus on the current HMRC target areas, including property income versus trading income, occupation and amenity value. The need for quality accounts working papers has never been so high with the farm revolution.

What You Will Learn

This live and interactive session will cover the following:

• How IHT and CGT impacts on farmers and landowners and how the farming industry has “switched on” to the 50% APR/BPR crisis
• Spring Budget 2024 - extending APR and changes to furnished holiday accommodation
• How forensically to identify, approach and tackle the relevant issues through the accounts working papers
• The importance of valuation for liability calculations
• Vigne v HMRC [2018] UKUT 357 (TCC) and enhanced livery and farming for the environment - total rethink over farm diversification
• Tanner and Graham, furnished holiday accommodation and the power of lavish services but a total overhaul to the “hotel”/trade is the way forward
• The importance of BPR, Rollover and BADR for development potential
• The planting of trees and the small development opportunity - correct accountancy
• The farm revolution - lifetime gifting together with an update to all Wills, Partnership Agreements and succession planning
• How the accountancy and tax profession need good agricultural lawyers for understanding ownership for capital taxes protection
• How agricultural lawyers need strong accounts and to understand them
• Using the ‘Land Capital’ Account - the importance for understanding the use in accounts
• Development land - how to disclose in the accounts
• 'Slice of the Action' schemes - CGT protection and Overage - capital taxes protection and accounts disclosure
• Succession planning helps set out what the family needs in the new tax environment. The farming family charter mindful of IHT funding
• The importance of the revised Partnership Agreement and the Wills, especially in the context of the Trust Registration Service and 100% BPR on the first £1million
• The need to work with other professionals to improve client's tax position ensuring that binding legal agreements are in place for capital taxes protection and strong valuations - consideration around AOC
• The importance of accounts working papers and tax return disclosure on the understanding of all the changes and Will drafting
• How is the farm owned - identification of partnership property Ham v Bell [2016] EWHC 1791 (Ch) - TRS importance - accounts can be wrong
• What is the intention of how the farm is owned? (The Will and documentation)
• Lifetime gifts to solve the problem - meticulous planning
• Gifts with Reservation of Benefit (GROB) on all the lifetime transfer
• Buying and selling a farm (also incorporates Capital Allowances) - more movement
• Restructure rather than push over the investment line - good recording
• IHT enquiries and how to avoid them - full disclosure on the IHT400 with strong valuation working all tied into the accounts
• Woodlands Relief revival - following 50% APR/BPR
• Review of Tanner, Kingsworthy Meadow Fisheries, Vigne, Butler and Firth in terms of diversification restructure
• No ‘clear bright line’ - the investment line - therefore redesign (Tanner)
• Consideration of Pawson and Ross in relation to Kingsworthy Meadow Fisheries, Vigne, Tanner and Graham
• James v James [2018] EWHC 43 (Ch) importance of strong Will file and strong attendance and tax planning notes and Hall re provision of IHT liabilities
• Larke v Nugus [2000] - the problems of incorrect DIY Wills - Williams, Abrahams
• Protecting capital taxes around the rise of dispute cases - Ham, Davies, James, Gee, Horsford
• Tenancy reform under the Agriculture Act - tax impact, business competency test. Total focus on accounting for tenancies - dilapidations, improvements and new barns
• Farming for the environment - still awaiting the results of the working party, importance of accounts disclosure
• Every set of farm accounts “tells a capital taxes story” and the accountant must be prepared to read the important signals for tax planning problems and positives

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.