Farming advice available at roadshows in mid Wales
Welsh farming families are being invited to a series of roadshows aimed at helping businesses consider different options for protecting their assets including succession planning.
The Autumn Budget on October 30 included significant proposed changes to IHT rules and these will impact many farm businesses.
Demand for the advice available through business service Farming Connect is anticipated to be high as a result therefore it is holding events, including in Newtown and Builth Wells, where experts in farm IHT issues and succession planning will provide important guidance on the planned measures and advise on how farmers can mitigate the effects of the change.
They will include Dr Nerys Llewelyn Jones, of Agri Advisor, who says the changes further emphasise the importance of timely and effective succession planning.
For example, the seven-year rule still applies which means someone could transfer an asset at least seven years before their death, without having to pay IHT on that asset. These are referred to as Potentially Exempt Transfers (PETs)
“The changes could lead to more transfers between generations before death but reservation of benefits rules apply and therefore this must be considered carefully,’’ explained Dr Llewelyn Jones.
“If these rules are broken, for example if the gift donor is still benefiting in some way from the estate, such as living in the farmhouse, it may be referred to as a “failed PET” and will then become subject to IHT.’’
She said heavier scrutiny on valuations and a greater need to have assets valued.
Until now, farmers will have been advised to essentially “keep farming” for as long as possible to qualify for Agricultural Property Relief (APR).
“This will apply possibly to assets that they are seeking APR and Business Property Relief (BPR) on, including those assets within the £1m cap’’ said Dr Llewelyn Jones.
However, there will be changes to the legal advice previously given as a result of the Budget and she strongly advises farmers to seek professional advice and put a plan in place.
“For some, small changes will enable them to maximise the new IHT regime and the reliefs available but for others significant planning and consideration will be required with some difficult decisions to be made,’’ says Dr Llewelyn Jones.
Solicitors, accountants and land agents will all be on hand to answer questions.
The schedule of events includes The Elephant & Castle Hotel, Newtown, on February 5 and Hafod a Hendre, Royal Welsh Showground, Builth Wells, on February 10.
For further details visit https://businesswales.gov.wales/farmingconnect/whats-on
