12th May 2025 ❘

Farmers Weekly: IHT planning – Beware of surprise tax liabilities

Farmers Weekly: IHT planning - Beware of surprise tax liabilities

Farmers Weekly: IHT planning – Beware of surprise tax liabilities…

Farmers Weekly recently interviewed our Agribusiness and Wealth and Succession Planning Partner Richard Miller about planning for the cut in inheritance tax (IHT) reliefs due to take effect from April next year and how a hasty move or an unexpected event can bring surprise tax liabilities and other complications.

At Autumn Budget 2024, the Government announced several reforms to agricultural property relief and business property relief from Inheritance Tax. In particular:

  • A new £1 million allowance will apply to the combined value of property that qualifies for 100% business property relief or 100% agricultural property relief or both – after the £1 million allowance has been exhausted, relief will apply at a lower rate of 50% to the combined value of qualifying agricultural and business property
  • The rate of business property relief available will be reduced from 100% to 50% in all circumstances for shares admitted to trading on a recognised stock exchange which are not ‘listed’

Many farming families are currently looking to restructure to ensure they avoid unintended consequences when transferring their assets and changing the way their business is set up, but Richard warns that there is a common misconception that no tax is due when gifts of property are made during lifetime…

Read the article in full, here.

If you’re looking to restructure or would like further advice on the changes to inheritance tax, you can reach Richard and his team on 01228 552296 – they’ll be happy to help.