Capital Taxes on Farms & Estates - An Accountants' Toolkit - Learn Live

Introduction

This full day 6-hour live broadcast session will look in depth at the impact of the two major capital taxes, Inheritance Tax and Capital Gains Tax, on farmers and landowners. Consideration will be given to the impact of Brexit and the Agriculture Act, together with the Budgets 2023 and 2024 and farming for the environment.

The session will not only look at the legislation but will also examine the relevant case law and consider HMRC’s current approach to collecting tax from the farming industry.

There will be a focus on the current HMRC target areas including property income versus trading income, occupation and amenity value. Many argue that the beneficial capital taxes on farms and estates keep farm prices and values high.

What You Will Learn

This live and interactive session will cover the following:

• How IHT and CGT impacts on farmers and landowners and how unprepared the farming industry is for maximising these reliefs
• Budget 2024 - extending APR and changes to furnished holiday accommodation
• How forensically to identify, approach and tackle the relevant issues
• How better to negotiate with HMRC and where appropriate the DV
• The farmhouse and Vigne v HMRC [2018] UKUT 357 (TCC) and enhanced livery and farming for the environment
• Graham, furnished holiday accommodation and the power of lavish services
• The importance of BPR and ER for development potential
• The planting of trees and the small development opportunity
• How the accountancy and tax profession need good agricultural lawyers for understanding ownership for capital taxes protection
• How the agricultural lawyers need strong accounts
• The ‘Land Capital’ Account - the importance for capital taxes
• Development land in the context of capital taxes
• 'Slice of the Action' schemes - CGT protection and Overage - capital taxes protection
• Succession planning helps set out what the family needs. The farming family charter and the Rock Review
• The importance of the Partnership Agreement and the Wills, especially in the context of the Trust Registration Service
• How better to plan and structure your client's affairs to maximise reliefs and minimise tax mitigation
• How to work with other professionals to improve your client's tax position ensuring that binding legal agreements are in place for capital taxes protection
• The importance of accounts working papers and tax return disclosure on capital taxes
• How is the farm owned - identification of partnership property Ham v Bell [2016] EWHC 1791 (Ch) - TRS importance
• What is the intention of how the farm is owned? (The Will and documentation)
• The farmhouse and the RNRB (Residency Nil Rate Band) and £2m limit - the potential for lifetime gifting
• Lifetime gifts to reduce farm values but need for capital taxes protection
• Gifts with Reservation of Benefit - analysis of tax problems
• Buying and selling a farm (also incorporates Capital Allowances)
• Capital taxes protection through evidence of activity and services
• IHT enquiries and how to avoid them - full disclosure on the IHT400 with strong valuation
• Woodlands - providing full capital taxes protection through commerciality and agricultural use
• Review of the Vigne, Butler and Firth success in context of BPR and APR
• No ‘clear bright line’ - the investment line
• Importance of the quality of services for the diversified business in the light of Vigne - impact of storage and other diversification
• Consideration of Pawson and Ross in relation to Vigne and Graham - but Budget 2024
• James v James [2018] EWHC 43 (Ch) importance of strong Will file and strong attendance notes
• Larke v Nugus [2000] - the problems of DIY Wills - Abrahams
• Protecting capital taxes around dispute cases
• The risk of the farm dispute - Ham, Davies, James, Gee, Horsford and impact on capital taxes
• Capital taxes and the farm business tenancy - the Rock Review
• Tenancy reform under the Agriculture Act - tax impact, business competency test and rejection of 8 year FBT restriction for APR
• Farming for the environment - sale of carbon credits and capital taxes impact
• Farm Will disputes, e.g. Williams, Hall and providing for IHT liabilities

Recording of live sessions: Soon after the Learn Live session has taken place you will be able to go back and access the recording - should you wish to revisit the material discussed.