Preparing for future tax changes

With Spring underway, many rural businesses are thinking ahead to the coming tax reforms, particularly concerning inheritance tax and capital gains tax. While the full details are expected in Summer 2025, now is the ideal time to review not just your tax position, but also your legal arrangements as a whole. “One of the most common causes of delay in succession planning or business transactions is uncertainty over property ownership and legal documentation,” says Sarah Parker, Head of Agriculture at Ware & Kay incorporating Pearsons & Ward Solicitors in Malton. “This can create significant challenges, particularly in rural estates where land has been passed down through generations. Unwritten agreements, missing title deeds, and unclear ownership records can slow down transactions, increase costs, and lead to unexpected disputes”. Key areas to review Title Deeds…

Anticipating Tax Reforms: What farmers and family businesses need to know

As we move towards Spring 2025, rural family businesses remain in a period of uncertainty regarding potential capital tax reforms. While the Autumn Statement in October 2024 hinted at changes to inheritance tax and capital gains tax, we are still awaiting further details, expected to be rolled out in Summer 2025. For farmers and rural enterprises, this continued uncertainty raises concerns about the future of agricultural and business property reliefs. These reliefs have long been critical in helping farming families pass land, buildings, and business assets down through generations without financial strain. While the government has yet to confirm any changes, speculation about tax reforms often leads to anxiety and a temptation to act pre-emptively. However, rushing into decisions—such as transferring assets prematurely—could have unintended consequences, including business disruption and family disputes. Instead, now is…

Farm Building Facelifts – Navigating the legal path to building conversion

There was good news for farmers earlier this year when permitted development rules were relaxed, making it easier to convert unused agricultural buildings into commercial and residential ventures without all the fuss, time and expense of having to seek planning permission. Diversification is becoming an increasingly popular way for cash poor but land rich farmers to generate much-needed extra cashflow. But what are the legal considerations involved in such schemes? Andrew Little, Associate Director and agricultural specialist at Ware & Kay incorporating Pearsons & Ward Solicitors in Malton, York, & Wetherby reports. There are many ways farmers can convert their unused buildings into money-spinners, but common ones include: tourism: holiday lets, B&Bs, camping/ glamping; business lets: office lets, storage units, car parking; retail: farm shops, farmers’ markets; food and drink: cider brewing, butchery, ice…

Risky business - why farmers should make a lasting power of attorney

Farming is a high-risk business with the agriculture, forestry and fishing sector topping the table for workplace injuries according to the most recent Health and Safety Executive figures. If you are the key person who makes decisions and holds the purse strings on your farm and you get injured or lose mental capacity, your farming business could grind to a halt: workers and suppliers could not be paid, bank accounts may become inaccessible, and loan or mortgage payments could fall into arrears. With this in mind, more and more farmers are making a lasting power of attorney to protect their business interests, to ensure their farm continues to flourish should they become incapacitated, as Laura Carter, Wills & Probate Solicitor and agricultural specialist at Pearsons & Ward Solicitors in Malton (part of Ware & Kay…

Inspired by Clarkson’s Farm? Key considerations when buying agricultural land

The last year has seen a surge in demand for agricultural land, according to recent analysis, with investors seeing it as an increasingly attractive option during a time of global economic uncertainty. Or maybe TV viewers have been inspired by Clarkson’s Farm? Whatever the reason, this spells good news for farmers looking to move to pastures new or offload land to raise extra funds but, buying or selling farmland can be more complicated than a normal property transaction. When buying farmland, we will still carry out the usual checks and searches required for any property sale or purchase, such as: investigation of title – to ensure the seller can pass the property to the buyer free of any adverse rights or warning notices and to establish whether there are any easements affecting the property; local…

Talking buying or selling land

Agri-environmental schemes are government-backed initiatives which pay farmers to make their agricultural activities more sustainable. They aim to increase biodiversity, restore the landscape, promote wildlife and to improve the quality of water, air and soil. Given the hardships many farmers have suffered due to Brexit, the pandemic and more recently the cost-of-living crisis, it is understandable why so many have embraced the concept of receiving subsidies to ‘go green’. But what schemes are available and what are the implications if you sell agricultural land which is subject to one of these schemes? Our agricultural law specialist at Ware & Kay Solicitors in York & Wetherby, reports. Shortly after the Agriculture Act was passed in November 2020, the government published The Path to Sustainable Farming: An Agricultural Transition Plan 2021 to 2024, which outlined its intention to…

Gifts and inheritance tax in the season of goodwill

Christmas is the season of goodwill and, aside from choosing what presents to wrap and place beneath the Christmas tree, you may also be wondering if you can make some more substantial gifts to take advantage of tax reliefs such as agricultural relief and lifetime gift exemptions. Emma Elwess, Director of Private Client at Ware & Kay in York & Wetherby, explains the different ways farmers can use tax reliefs to give away gifts without incurring inheritance tax. General lifetime gifts During your lifetime you can give away any of your possessions worth up to a total value of £325,000 without being liable to inheritance tax. Gifts given over this amount will usually be subject to inheritance tax when you pass away (unless you live longer than seven years after the gift is given). There…

Farmers – are you on top of your EPC obligations?

It is common for farmers to supplement their incomes by renting out buildings on their land. All well and good, but in April 2020 new rules were introduced making it illegal, subject to some exemptions, to let a private rented property with an energy performance certificate (EPC) rating of less than E. So, what are the implications of this for farmers and are there any exemptions that they can take advantage of? Andrew Little, agricultural law specialist at Ware & Kay in York & Wetherby, reports. The Minimum Energy Efficiency Standards (MEES), under which an EPC is assessed, require anyone with a private rented property with a rating of F or G to undertake improvements to bring it up to an E rating before they can rent it out. The rules only usually apply to buildings…

Don’t let your diversification ambitions be thwarted by an agricultural land restriction

Many farmers have experienced hardship in the recent past, thanks largely to the combined effects of Brexit and Covid-19. Little wonder then that many are looking to use their land in different ways to boost dwindling profits. There are several ways you can diversify to make more efficient use of your agricultural land, but, before you embark on a diversification project you need to ensure your ambitions will not be thwarted by a restriction on change of use. Agricultural ties If you are considering selling a house on your land that has an agricultural tie (or an agricultural occupancy condition), it may make the property harder to sell. Under the Town and Country Planning Act 1971, such ties usually require that ‘the occupation of the property is limited to a person solely or mainly employed, or…

Be a good sport! Take care with sporting rights on farmland

Sporting rights can be extremely valuable to landowners with some, such as rights on a grouse moor, being potentially of more value than the land itself.  Granting sporting rights to others also provides an attractive means of diversification and a source of additional revenue to improve profit margins. However, as Jacqueline Barr, an agricultural law specialist at Ware & Kay Solicitors in York & Wetherby explains, ‘There can be pitfalls, when others have sporting rights over your property as this gives them the legal right to enter your land to hunt, fish or shoot.’ Acquiring land When buying piece of land, many believe that they will own it in its entirety and have the right to do whatever they want on it, and to stop other people doing anything on it too. Under English property law…