As farming families frequently rely on the natural succession of the farm, where ownership is passed down through the generations, every care must be taken to avoid a hefty inheritance tax bill.
The first step is, of course, to ensure that you have a valid and up-to-date Will to ensure that the legal ownership of the land and business assets used in running the farm pass to your chosen relatives or other beneficiaries. In addition, your Will should be drafted smartly to ensure that it makes use of every available opportunity to ease inheritance tax liability – particularly with regard to the use of agricultural and/or business property reliefs. Another such measure that was only introduced in 2015 is the residence nil-rate band.
Laura Carter, specialist agricultural Wills & Probate Solicitor at Pearsons & Ward…