As fears continue over the impact of the changes to agricultural property relief and business property relief in the autumn budget, mfg Solicitors is advising farmers to seek expert advice.
Alex Phillips, partner and head of the Agriculture and Rural Affairs Division at mfg, said: “Farming families are feeling particularly let down following the Chancellor’s Budget.
“You can feel the mood and despair just by looking at social media, with one farmer claiming that he can no longer afford to die, and the National Farms Union (NFU) President, Tom Bradshaw, scathingly referring to the Budget as disastrous for the future of family farms and a threat to the resilience of our food production.”
She added: “Many have said that these changes could severely hamper a farmer’s ability to pass the family farm onto their children and grandchildren without having to sell a significant part of the land to pay tax. Which for many may not even be possible without risking the viability of the entire farm.
“The Chancellor claims that only 6% of estates will pay IHT this year, but the general consensus amongst agricultural professionals is that in reality all but the smallest of farms will be affected at a time when the industry is looking to the Government for support.
“Farming families will now need to seriously consider their futures to ensure the preservation of their farms, many of which have been in their families for several generations, as well as the general future sustainability of their businesses and the country’s food production.”
Sally Smith, mfg partner and head of the Tax and Estate Planning Team, said: “We would urge farming families to seek professional advice about their Inheritance Tax and succession planning.
“Given the significant changes to Agricultural Property Relief and Business Property Relief for Inheritance Tax announced in the Autumn Budget, all farming families’ Wills and Partnership Agreements should be reviewed and updated where necessary.
“Farming families are also likely to want to consider lifetime gifting as part of their succession planning. It is very important they obtain thorough advice from their lawyers, accountants and land agents, preferably all working together.”
For more information go to www.mfgsolicitors.com