Wills & Tax Planning for Farmers & Landowners - An Essential Update

Introduction

This full day course explores the crucial role of a well-drafted will in succession planning, particularly in light of the shift toward 'farming for the environment' and the anticipated findings of the working party.

With Agricultural Relief (‘AR’) and Business Relief (‘BR’) set to be cut to 50% from April 2026 (or possibly 2027), updated wills are central to effective tax planning.

The course will cover practical responses from farmers and the importance of wills, LPAs, and associated tax measures.

It will also address potential IHT liabilities, their impact on estate distribution, and the increasing emphasis on proactive planning in the farming and tax press.

Suitable for professionals advising farmers and landowners, the course offers a timely update on the challenges and tax-efficient solutions emerging post-Autumn 2024 Budget, including the role of lifetime transfers.

What You Will Learn

This course will cover the following:

• The farming revolution post the 50% AR/BR reduction combined with the move to ‘farming for the environment’
• Understanding ELMs and the need to review and start all succession planning and wills for the impact of the changes for farming clients
• Consideration of £1million at 100% AR/BR
• Protection of the farm business pre and post ‘probate’ as part of will drafting where possible
• Awaiting the results of the farming for environment working party e.g., sale of carbon credits, recording biodiversity net gain, and the power of natural capital
• The considerations around tenancy reform impact and changes - AHA tenancy APR stays at 50%
• The risk and power of the farming dispute claim - the need for a strong will file and robust protection through letter of wishes and quality tax planning notes
• The importance of potential Larke Nugus claims and protection planning through a strong file
• The practical implications of farm intestacy
• The need for the will drafter to see and understand the farm accounts and partnership agreement
• Considerations of lifetime gifting with Gifts with Reservation of Benefit (‘GROB’) (Chugtai) and failure of Potentially Exempt Transfers (‘PETS’) as well as interactive CGT
• Practical tips in maximising AR and BR claims, especially with reduced reliefs and the £1million limit
• Recent tax tribunals only allowing 0% BPR, e.g. Butler and the wedding barn, plus Tanner on ‘holding too many investments’ and putting protection in place, for example the ‘Tanner Farm Hotel’
• The power and tax importance of the well drafted partnership agreement and interaction with the will
• The impact of farming agreements e.g., CFAs, JVs, and share farming on will planning, e.g. understanding partnership and non-partnership property
• The understanding of the land capital account in practical terms in wills and probate
• The Trust Registration (‘TRS’) rules - partnership property and advantages of registry
• The importance of robust farm accounts that reflect correct farm ownership and protect AR, BR and business CGT relief claims in terms of will drafting
• High farm values - the increased pressure on farm valuations with impending tax liabilities and low farm profits, the possible sale of part of the farm pre and post probate, particularly to raise funds for later life care
• The interaction of farm development potential, hope value, the case of Foster and compulsory purchase impact
• Impact on will and the provisions for potential IHT liabilities post the Autumn Budget 2024, e.g. N Hall and another (as trustees of Carolina Raboni deceased) and the interaction of values
• Abrahams (Ingram) and the problems of ‘DIY wills’
• The quirks of nuptial agreements and the strength of the surviving spouse exemption which survived the Budget
• Recent case of undue influence - impact of the farm revolution on some farming members with vested interests
• The will case of Williams and the risk of incorrect farm wills and the need to confirm instructions from clients
• The Lane case - understanding partnership property and the will in terms of identifying the partnership share
• The importance of the competent executor with increased responsibilities