6 Steps to Estate Planning

Estate planning is the process of deciding what should happen to your assets after your death or if you become incapacitated, and taking the steps necessary to ensure your decisions will be carried out. There are 6 key steps: Identify all the assets and liabilities. It is surprisingly easy to overlook items like BPS entitlements, … Continue reading 6 Steps to Estate Planning

How Does the Residence Nil Rate Band Affect Farmers?

The introduction of the Residence Nil Rate Band (RNRB) may have a substantial impact on Inheritance Tax (IHT) Planning and how farmers pass on their assets, possibly tax-free. The new allowance was introduced back in April 2017 at an initial threshold of £100,000, which will rise to £175,000 by April 2020. This threshold is per … Continue reading How Does the Residence Nil Rate Band Affect Farmers?

Taxpayer Victory: Tribunal Grants Inheritance Tax Relief to Livery

Business Property Relief (BPR) can exempt assets from Inheritance Tax (IHT) on the basis that they were used in a genuine business, assuming all other qualifying criteria is met. It is not available where the business activity is wholly or predominantly holding investments. In The Estate of Maureen W Vigne (deceased) v HMRC [2017], HMRC … Continue reading Taxpayer Victory: Tribunal Grants Inheritance Tax Relief to Livery

Main Residence Nil Rate Band (RNRB)

The introduction of the Main Residence Nil Rate Band (RNRB) may have a substantial impact on Inheritance Tax Planning and how farmers pass on their assets, possibly tax-free. The new allowance is due to be introduce by April 2017 at an initial threshold of £100,000 which will rise to £175,000 by April 2020. This threshold … Continue reading Main Residence Nil Rate Band (RNRB)

Inheritance Tax Planning For Farmers

As every farmer knows agricultural property attracts agricultural property relief (APR) which means that agricultural property can be gifted free of IHT - or does it? There are situations where HMRC have successfully challenged the claim for APR. The rules are complex and each case has to be looked at on an individual basis. There … Continue reading Inheritance Tax Planning For Farmers

Big Changes In Estate Planning

The introduction of the Main Residence Nil Rate Band (MRNRB) has significantly changed Inheritance Tax Planning for Land and Business Owners. If your assets are worth more than £2m (including Land and Business assets) then your Estate could lose the benefit of up to £350,000 in MRNRB. This could increase Inheritance Tax by up to … Continue reading Big Changes In Estate Planning

The Success In Succession

Farmers Weekly and the NFU have joined forces to raise awareness of the importance of succession planning for farmers. Their joint campaign has hit social media bolstered by its very own hashtag: #elephantonthefarm, with both parties acknowledging the difficulty many face in approaching the issue and yet the importance of planning ahead. For many farmers the plan … Continue reading The Success In Succession

Budget Brings Big Changes to Farming Businesses

The recently announced National Living Wage of £7.20 per hour is expected to hit farming businesses hard. The launch of the new wage, which is replacing the National Minimum Wage, was announced in the Chancellor’s budget and represents a jump of 11% from the current £6.50 an hour. The amount is set to rise to … Continue reading Budget Brings Big Changes to Farming Businesses

Succession Planning for Farming Businesses

A recent survey by Farmers Weekly and NFU Mutual found that more than 60% of UK farming families do not have a succession plan. The reasons for this include lack of communication, a desire to avoid family conflict, the owner’s reluctance to retire and the fact that the business can only support one successor. In … Continue reading Succession Planning for Farming Businesses

Inheritance Tax and Agricultural Property

Inheritance Tax is the tax due on the value of an individual's estate when they die. The Inheritance Tax threshold for the current tax year is £325,000, so in the event of death, an estate worth more than £325,000 will incur a tax charge of 40% (or 36% if 10% or more of the estate … Continue reading Inheritance Tax and Agricultural Property