The team at Davisons have significant experience in dealing with a variety of different sized country estates, and where appropriate we will work with you to help you understand if the use of trusts as an efficient method of tax planning and asset protection will work for you and your situation.
We are continually providing advice to a number of different customers who are looking to diversify away from farming, so they can increase income without jeopardising the capital taxes reliefs previously available on the assets and land held.
We constantly review tax cases to ensure we have all the tools we will need to work with you at our disposal. We will work with you to try to obtain 100% inheritance tax relief whilst maintaining business status to secure rollover and holdover relief for capital gains tax where possible. We can also work with your Solicitor to ensure that any wills you might have in place also mirror your requirements and desires, thus ensuring that there is no ambiguity when these documents need to be acted upon.
Davisons are members of NFU Professional, and the ICAEW agricultural division, and have a number of qualified chartered tax advisers within our team. We have also been successful in winning cases against the capital taxes office involving agriculture and land..
Our services include assisting with the formation and administration of trusts, together with the preparation of annual accounts and tax returns. We want to ensure that we provide you with a tailored service that meets your individual requirements.
We have an in depth experience of dealing with a wide variety of business structures including the usual sole traders, limited companies, partnerships and limited liability partnerships, together with share farming arrangements, trusts and joint ventures.
To find out more and contact us, please feel free to email us at email@example.com or call our team on 01769 572 404.
TAX PLANNING ISSUES
There are three highly relevant areas where we are currently assisting clients:
• Farmer and Balfour Cases and Rental Properties
In these Cases, 100% business property relief was given in full in respect of all rental properties where they formed part of a country estate, and where ‘in the round’ the main activity was farming. We have used this principle on various cases to reduce the overall exposure to inheritance tax by ensuring they are on balance still seen as farmers. This is particularly relevant for country estates of all sizes where some trading activity is undertaken together with rental activity.
• McKenna Case and Farmhouses
Following the decisions in the McKenna and Antrobus cases we have developed our own strategies to maximise the chances of obtaining either agricultural property relief or business property relief on all or part of country houses and farmhouses.
• Are you grass letting?
Given the decision in the McCall case, the Revenue will no doubt shortly be focusing on ‘farming’ arrangements and look to attack those where they believe the individual is not ‘actively trading’. This is particularly relevant where the trading activity is that of grass letting. The availability of both business property relief for inheritance tax purposes, and also entrepreneurs relief for capital gains tax could be affected. It is therefore vital that the business activities are carefully considered to ensure the trading and business ‘tests’ are satisfied. Our grass letting newsletter identifies the difficulties faced in meeting these criteria. This can be found in the Factsheets section of the website, under Agriculture & Estates.