CGT & IHT Relief for Farmers & Landowners - Managing the Risks

Introduction

Farming has benefited from generous IHT and CGT reliefs for a number of decades. Such benefits have encouraged many investors and ‘lifestylers’ to purchase farms and landed estates resulting in strong values. The ‘rollover buyer’ has been prominent in farm purchases.

HMRC have blatantly attacked anyone taking advantage of the generous CGT/IHT reliefs particularly with regard to ‘investment’ and ‘landlord’ status together any private use - tax advisers have been kept very busy by this approach. A good deal of farm succession planning is based on the historically strong capital tax reliefs but all that might change with an APPG report suggesting the removal of APR and BPR together with OTS reports on proposed changes to IHT/CGT legislation, although these have currently been shelved.

Against this uncertain tax background there is also the agricultural transition plan and the move towards farmers ‘earning’ the subsidies through environmental issues as opposed to area-based subsidies. This is all part of the move towards farming for the environment with the ELMs subsidies.

This virtual classroom seminar looks at the certainties and uncertainties of CGT & IHT relief for farmers & landowners embracing what action can be taken now and tax planning around the risks of uncertainty and maximising the criteria to achieve the relief. It will consider any possible changes post the Finance Act 2021, for example the super-deduction and the role of the limited company, and the Spring Statement 2022.

What You Will Learn

This live and interactive session will cover the following:

• OTS reports on IHT and CGT - APPG report on IHT
• The reduction of the BADR (ER) limit to £1million
• Finance Act 2021 impact on IHT and CGT
• Agriculture Act impact on farming for the environment
• Agricultural transition plan impact on farm sales and probate
• Government exit payment for farmers 2022
• The importance of the farm partnership agreement for IHT and CGT protection amongst all the updates
• 50% BPR on non-partnership property
• 50% APR on AHA tenancies
• Tenancy reform - the impact on IHT AND CGT planning
• CGT on tenant farmers surrendering tenancy for capital sum
• CGT planning on farmers selling large development site
• CGT landing around deferred consideration
• CGT planning on selling small parcel of land, yards and buildings for development
• CGT and IHT protection around option and promotion agreements
• Farm survival post the subsidy gap the importance of the tax efficient development gains
• IHT planning on the Hope value of potential development (Foster case)
• IHT protection of grazing agreements (Gill case)
• IHT efficiency of the Contract Farming Agreement (CFA) and all potential farming agreements, e.g. Share Farming and Joint Ventures
• The Farm Will as part of IHT succession planning
• With so many potential changes to capital taxes and the farming subsidies will all existing succession planning have to be rethought?
• Lifetime gifts, holdover relief and gifts with reservation of benefit
• The tax efficiency of the ‘lifestyle buyer’ - what is left after the changes?

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.