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 the time for strategic succession planning. Rather than reacting to uncertainty, rural business owners should use this period to review their current structures, assess potential risks, and ensure their business is well-positioned for any future tax changes.

With further clarity expected in the coming months, staying informed and seeking expert legal advice will help ensure that assets are protected, businesses remain stable, and family legacies are preserved for future generations.

For tailored advice on succession planning or navigating potential tax changes, contact Emma Elwess Director or Sarah Parker Head of Agriculture at Ware & Kay incorporating Pearsons & Ward Solicitors on Malton 01653 692247  or email emma.elwess@warekay.co.uk or sarah.parker@warekay.co.uk.