Tax Planning for Farm Development Land - In 1 Day

Introduction

Massive tax changes are on the horizon for farmers with potential development land - are you ready?

With the Autumn 2024 Budget and significant reductions to Agricultural and Business Reliefs looming, this full-day course dives deep into the critical tax issues surrounding farm development land. We’ll explore how the shift away from BPS and SFI, rising construction costs, and housing policy changes under Chancellor Rachel Reeves are reshaping the landscape. The course ties together key elements of Inheritance Tax (‘IHT’), Capital Gains Tax (‘CGT’), VAT, income tax, and corporation tax - helping you understand the whole picture.

This course will provide you with practical strategies for navigating small and large-scale developments, including the sale of unviable cottages, managing Balfour and s.105(3) risks, and understanding the impact of ‘hope value’ and reduced BR from April 2026. The course will also cover rollover relief, BADR changes, and the emergence of the ‘rollover buyer’. All this will be connected to effective farm succession planning, ensuring your clients are protected and future ready.

Join us for this essential workshop to learn how to guide farming clients through today’s complex tax environment. Equip yourself with the tools to build resilient tax strategies for development land - before the rules change.

What You Will Learn

This course will cover the following:

• Compulsory purchase of land and potential loss of hope value
• Post-Budget Autumn 2024 planning is not too late - urgent with drop in BR but will it be April 2026 or 2027? Or will there be a change of government?
• Planning permission changes - permitted development rights - Class Q or R and the building of 1.5 million houses - impact on tax planning for farmers
• The impact of the reduction of the £10million limit for BADR on all farm development projects to £1million and the rollover buyer
• The role of incorporation tax planning with R&D advantages - impact on farm development in the overall succession planning
• CGT loss relief on the value of BPS entitlements to reduce CGT liabilities - the small increase in CGT to 24%
• Equalisation agreements and tax planning around pooling
• Grazing agreement without activity - risk to tax relief on development land - consideration of the Gill case - the ‘working farmer’ - BR risk
• Weak contract farming agreements (‘CFAs’) - risk to tax reliefs on development land - must be robust
• Foster - valuation of hope value - ‘top down’ not ‘bottom up’ for probate - impact on planning - the compulsory purchase acquisition
• Rollover into ‘AIM’ investments and farm improvements
• Graham, Vigne, Firth, Butler, Kingsworthy Meadow Fisheries and Tanner - BR on development of diversified businesses s105(3). With BR lost on 5 units in Tanner we will see the emergence of restructured ‘Tanner Hotel’
• The importance on the ‘focus on trade’ on all developments tax planning and business tax relief - the Stolkin case
• Overage, slice of action schemes and opt to tax considerations
• The promotion agreement v the option agreement and tax protection
• CGT base cost of development land identification and planning and increased CGT rate
• Development with use of principal private residence relief and the garden development - Phillips. CGT PPR impact - the Lee case and increase in CGT
• Farming for the environment and delay in the working party report and impact on development land
• Sale of carbon credits and ‘green washing’ - purchase by developers
• Developing listed buildings - Heather Whyte plus VAT negative of Richmond Hill case
• Mixed rate SDLT and future development - How Developments UT loss but Suterwalla win and Guerlain-Desai win and constant stream of cases - at last victories for the paddock and woodlands
• Development of farm buildings - plan ahead for VAT - Blaenau Bach Farm and complexity of zero rate for new builds, opt to tax etc.
• Bewley and Henderson - SDLT derelict buildings - is it a residence? Further guidance from the new Mudan decision and uninhabitable properties