Most agricultural and rural businesses centre on the family. Passing on the family assets from one generation to the next while providing sufficient income for the older generation and avoiding Capital Gains Tax pitfalls takes a real understanding of the family’s needs and priorities, as well as in depth knowledge of how Inheritance Tax and Capital Gains Tax legislation is applied in practice.
Items that need to be considered include:
• Agricultural Property Relief and how this applies to the farming/rural business and in particular to the farmhouse and cottages
• Business Property Relief - how it applies to the non-agricultural trading assets and how and when it can be used for surplus farm buildings and cottages
• Other Inheritance Tax rules such as the seven year rule on gifts, reservation of benefit, gifts out of income and promissory estoppel
• Gifts triggering Capital Gains Tax and the use of Holdover Relief and Entrepreneurs Relief
• Using trusts to protect family assets as well as for tax planning
• Use of farming structures such as family partnerships as part of the succession plan
To find out more about our rural business services contact us today for advice on how we can help.