Plan, prepare, prevent panic.... Helen King

Succession planning Day-to-day running of the business Ownership of the farm Inheritance tax implications

Check your documents Partnership agreement Wills Accounts

Check your documents What do you own, how do you own it, and what do you use it for? Who owns what (BENEFICIALLY)? What is partnership property? Is any rent paid? Held as tenants in common or joint tenants?

The Business Retirement Introduce the next generation What will the business look like?

Ownership of the farm Transfer of assets during lifetime or on death? Inheritance tax on value in excess of £325,000 Availability of inheritance tax reliefs Agricultural Property Relief Business Property Relief

Inheritance Tax Watch non-agricultural value – eg hope value Farmhouses – do they qualify? Non-qualifying assets – eg let buildings Make gifts to next generation Consider non-farming children

Other tax reliefs Protection of value from tax Entrepreneurs’ Relief Rollover relief

Entrepreneurs’ Relief Main rate of CGT – 28% With Entrepreneurs’ Relief – 10% 18% tax saving on £1m = £180,000 Amounts involved are significant

Rollover relief Sale of one asset and reinvest the money Do you qualify? There needs to be a link between the asset and the business Watch where asset ownership and business are different

Summary All businesses should review their succession plans and potential IHT liabilities Restructure if necessary Consider other tax reliefs Entrepreneurs’ Relief Rollover relief

Before 5 April/ business year end Plan, budget, take advice Income tax/NI Business structure Capital Allowances Pension contributions Top up ISAs Pay dividends Capital Gains Tax Inheritance Tax

Thankyou for listening Questions? These slides are intended for use in connection with the presentation given on 12 March 2016. No action should be taken on the basis of information contained in these slides or in the presentation without obtaining professional advice specific to the circumstances. No responsibility for the loss arising to any person acting or refraining from acting as a result of the material in these slides or presentation can be accepted by the speakers or by Ellacotts LLP