Wills & Tax Planning for Farmers & Landowners - The Current Position

Introduction

This virtual classroom seminar will explore the importance of a well-drafted will in the context of solutions to the problems currently facing farming with high value farms against the uncertainties of the move to ‘farming for the environment’ and the drop in subsidies. With the slashing of APR (Agricultural Property Relief) and BPR (Business Property Relief) to 50% from April 2026 there is increased focus on succession planning with updated wills at the core of the overall tax planning. There is also a need to potentially provide for the Inheritance Tax (IHT) liability in the will and consider the impact (the case of Hall).

The presentation will explain in practical terms how farmers are dealing with the current changes, ranging from ‘head in the sand’ to full succession planning, which of course needs the protection of an updated will and associated tax planning. Ironically all the current farming and tax press are prolific in their reporting of the need for farm succession planning which incorporates the well thought through, well drafted will (Williams).

Such work is very much part of IHT and ‘probate’ planning and also the understanding of the farming family’s needs and wishes as translated into tax planning and will protection. The session is suitable for anyone currently acting for farmers and landowners and will provide a useful update on identifying the problems and finding the tax solutions. A large amount of planning post the Autumn 2024 Budget has been lifetime transfers and we must consider their impact on wills and the full succession planning in context of the draft legislation having been published.

What You Will Learn

This live and interactive session will cover the following:

• The farming revolution post the 50% APR/BPR announcement 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 of the estate at 100% BPR/APR
• 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% but all tenancies need review
• 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
• The practical implications of farm intestacy
• The need for the will drafter to see and understand the farm Accounts
• Considerations of lifetime gifting with Gifts with Reservation of Benefit (‘GROB’) (Chugtai) and failure of Potentially Exempt Transfers (‘PETS’)
• Practical tips in maximising APR and BPR claims, especially with reduced reliefs and the £1million limit
• Recent tax tribunals, e.g. Butler and the wedding barn, plus Tanner and the holiday accommodation on holding too many investments and putting protection in place
• 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 wills and probate
• The Trust Registration (TRS) rules - partnership property and advantages of registration
• The importance of robust farm accounts that reflect correct farm ownership and protect APR, BPR 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 the farm pre and post probate, particularly to raise funds - April 2026 is close
• The interaction of farm development potential, hope value, the case of Foster and compulsory purchase impact on hope value and on farmers generally
• Impact on will and the provisions for IHT liabilities post the Autumn Budget 2024, e.g. N Hall and another (as trustees of Carolina Raboni deceased)
• Abrahams (Ingram) and the problems of ‘DIY wills’
• The quirks of nuptial agreements and the strength of the surviving spouse exemption
• Recent cases of undue influence - impact of the farm revolution on some farming members with vested interests and changes that will be made
• The will case of Williams and the risk of incorrect farm wills and the need to confirm instructions
• The Lane case - understanding partnership property and the will
• The importance of the strong executor with all the changes etc

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.