IHT & Farms - The Current Position

Introduction

The Autumn Budget 2024 sent shockwaves through the farming community - with Agricultural and Business Relief for Inheritance Tax (IHT) slashed to 50% from April 2026. The financial landscape is changing fast now that the draft legislation has been published. These changes could lead to significantly higher IHT liabilities, making full farm succession planning not just important, but urgent.

Lifetime transfers are now a key strategy, but Capital Gains Tax and funding options, including potential farm sales, must also be addressed. Farmers will be producing “hit lists” of possible assets to sell. Gain clarity in a time of uncertainty. This full-day course will guide you through the implications of the reduced reliefs, combined with the political unpredictability - including the Reform Party’s pledge for 0% IHT.

Secure your place today and ensure your clients or farm business are prepared for what’s ahead.

What You Will Learn

This course will cover the following:

• Using the £1 million allowance to maximise 100% APR and BPR
• The need for fully updated farm succession planning to consider all eventualities
• The need for farm wills, LPAs and partnership agreements to be updated and dovetail
• Maximising areas of potential 100% APR/BPR restricted to £1million
• Focus on the risks of holding investments resulting in 0% BPR, e.g. Butler, Tanner and Kingsworthy Meadow Fisheries
• AHA tenancy - still 50% APR
• Partnership property - still 50% BPR - protection of beneficial interest
• Lifetime gifting for IHT saving - holdover relief remains - the need to understand CGT including rollover relief and protect against GROB (Gifts with Reservation of Benefit) and failed PETs (Potentially Exempt Transfers)
• The importance of current and future farm values on all potential liability, e.g. the impact of ‘AOCs’
• Funding the future IHT liabilities in the context of funding end of life care
• The “hit list” of possible assets to sell to fund IHT liabilities
• Rethinking woodland relief and heritage property in the context of reduced relief
• The impact on potential development land values and sales including compulsory purchase (‘CPO’) proposals on future IHT liabilities
• The need to consider life expectancy
• The increased pressure on the Will and the executor with increased IHT liabilities and funding
• The need to consider the “letter of wishes” for a large number of uncertainties