IHT & Farms - The Latest Update & Guidance

Introduction

This course is suitable for land agents, lawyers, tax advisers, and accountants.

We are now post 6 April 2026 and the dust has settled on the Autumn Budget and the slashing of IHT relief to 50% after £2.5million allowance at 100% with the allowance transferable between spouses. The need for full farm succession planning is now a reality and previous succession planning needs updating. The role of the spouse has now become very focused. It is key that all the professionals work together to look at IHT planning and the role of the land agent and valuer becomes very important.

There will be potential increased IHT liabilities which will need full farm succession planning. With “mansions tax” disposal of the large farmhouse that is vulnerable to IHT can be downsized and thus achieve more IHT relief as part of the considerations.

Lifetime transfers are a debatable subject and future CGT liabilities will have to be considered, as will funding, which could be through sales of farm properties. There has to be meticulous forward planning and consideration on the interaction of CGT and IHT with a good understanding of farm values.

What You Will Learn

This live and interactive course will cover the following:

• The new taxation of the ecosystem service guidance
• Using the £2.5 million allowances to maximise 100% BPR/APR relief - own and spousal - the valuation becomes of prime importance
• The need for full updated farm succession planning with accurate values with focus on spouses and problems where 50% will impact as part of full farm succession planning
• The need for updating farm wills and partnership agreements (Maile and Merryman)
• Maximising areas of potential 100% relief - checking partnership property definition
• Focus on the risks of holding investments as opposed to trading - 0% BPR (Tanner, Butler and Kingsworthy Meadow Fisheries and now the Beresford case)
• AHA tenancy - still 50% APR - therefore under threat now? But £5million joint helps
• AHA succession and the Thomas case
• Partnership property - still 50% BPR but with spousal transfer more chance of 100%
• Lifetime gifting for IHT saving - holdover relief remains - the need to understand CGT including rollover relief and GROB - new Chugtai case
• The role of the “lifestyle” farmer and the opportunist farmer with possibly more farm to purchase as prices drop
• The importance of current and future specific farm values for planning and probate
• Funding the future IHT liabilities - the “hit list” and the farmhouse - downsizing - where is this after the £2.5million u-turn?
• Rethinking woodland relief and heritage property relief potential advantages
• The impact on potential development land values and sales
• Protection against disputes - the positive to be taken from the Cobden buy out and the need for wills and lifetime transfers

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.