Acting for Farmers - An Update

This course takes a broad and practical look a the main issues affecting farmers and their advisers. It is primarily aimed at those tax and accounts staff with a reasonable knowledge of IHT and CGT issues. 

With the move to “farming for the environment” there are a lot of changes facing the farming sector and the tax implications must be understood.  

This live and interactive session is designed to give delegates a full overview of the tax update in the context of the problems currently facing the farming sector, with a particular focus on the role of the professional advisor in an ever-changing farming industry and looking at these changes in the context of a farm tax update on a broad range of subjects. 

The high achievement of farmland values has increased the quantum of tax risk and the complexity around acting for farmers and the lack of clarity in some areas can cause problem and debate with HMRC. In this highly practical session delegates will be provided with a summary of the traps that exist in acting for farmers and landowners with focus on development land following the announcement by Rachel Reeves. With increased farm values there are attacks from every corner and a history of a large number of farm disputes going through court. The session will also look at the risks of the current changes to farming and the proposal of “farming for the environment” through ELMs.  

Content will include: 

• The changes to the furnished holiday letting tax rule 

• Update from the 30 October 2024 Budget and other changes 

• Farmhouses – the risk, the importance of s.117 

• APR, BPR and occupation – the understanding of the “Brightline” investment v trading 

• Focus on tenancies notice to quit  

• Reminder of all relevant CGT reliefs 

• Trading vehicles – the company together with R&D qualification 

• Other land issues including sale consideration 

• Proprietary estoppel and Will disputes  

• Capital allowances and repairs ensuring they tie into succession planning (Pratt, Hopegear, Steadfast and Cairnsmill) – the risk of not identifying capital allowances correctly 

• May, the grain silo case, and Griffiths, the potato storage case, importance of farm capital allowance 

• The IHT and CGT weaknesses of the FBT – need to identify incorrect FBTs and other leases. The ‘stand alone’ company and R&D tax opportunities 

• Drop of BADR to £1 million – impact of the rollover buyer – maximisation  

• Caravan storage and the need for services – the hamper and lavish services to move activity from holding investment to trade 

• Protecting cottages and let activity with Balfour – the sale of complex lettings 

• The grazing agreement, the case of Gill, contract farming and the partnership agreement – exploring maximum tax efficiency post the Rock Review and the HMRC rejection of the 8 year FBT 

• The increasing responsibility of the role of executor regarding a trading farm, the need for correct values, possible sale of assets and online CGT return 

• Weak contract farming agreements (CFA) – consider farming in hand – Arnander – the CFA under pressure post the Rock Review  

• Weak v strong grazing agreements – take back in hand (McCall and Gill)? 

• Development – slice of the action and overage – is the tax protected? 

• Farmland values: Foster, hope value, the quantum of risk on increased values of development land – warnings 

• The IHT400 – the importance of the history of the farm and Accounts information for evidence, possible rectification of Accounts that jeopardise capital taxes 

• The importance of having robust legal agreements in place: the Will and risk of intestacy, proprietary estoppel disputes and loss of tax reliefs  

• Farm losses – the impact of Naghshineh and change of 11 year stud farm losses by the simple altering of a BIM 

• VAT on liveries, partial exemption, artificial separation, links to Vigne (UT success) and need for services 

• VAT complexities and the supply of land – Rufforth Park – has the VAT been fully analysed?  

• The risk of post transactional tax planning 

• Mehjoo v Harben Barker – the need for specialist farm tax advice  

• The profitability of woodland and sale of carbon credits – taxation deferred the Working Party results  

The content for Online courses predating 2025 may vary.