Everyone is aware of the proposed Inheritance Tax changes for APR and BPR as set out in the October budget.  As we have previously highlighted, the statistics and analysis used to formulate this proposal are far from sound.  This RICS article by Charles Cowap is extremely articulate about the problems with these figures and sets out some relatively straightforward practical steps that smaller farming units can employ to mitigate their exposure to the increased tax measures. 

Whilst these measures seem relatively straightforward, they are not without cost and risk. Asking farmers to implement measures for tax management will only pile more financial and emotional pressure on businesses already struggling to produce sustainable food in a commercially feasible manner – it won’t fill the government’s coffers in any sort of proportionate manner.    

Everyone’s own circumstances will be different and we are urging everyone affected to be patient and fully consider all the options before rushing into any immediate changes to business ownership structure. There is still time before the new rules are formally legislated and there is growing pressure on government to review their proposals or at least undertake some consultation.  Will we see further watering down of the Finance Bill akin to the U-turn on the non-dom proposals?   Whilst we might hope so, we urge anyone who is considering a business re-organisation to ensure that their accountants, tax advisors and valuers work closely together to carefully consider all the options before making any medium to long-term changes – these might take more to undo in the future should current proposals be amended. 

Wilson Fearnall can work with tax advisors and soliciotrs to make sure the values are being considered in the right way.  Getting a feel for the numbers involved is an important first step.