Updated: Dec 2, 2019
How do you sign over your family farm / business early in your succession planning?
Agricultural Property Relief (APR) is a relief from Inheritance Tax and so can be a very valuable tool in minimising the amount of tax payable on death or on lifetime gifts to trusts.
With increasing volumes of anti-avoidance legislation and cases tightening up on what will qualify for relief, if you have any agricultural properties of businesses, you need to know about APR.
You can pass on some agricultural property free of Inheritance Tax, either during your lifetime or as part of your Will. The relief is available on the value of ‘agricultural property’ which is transferred either:
In lifetime (which would be a gift)
When Agricultural Property is chargeable as settled property
What is included in the definition of ‘Agricultural Property’?
Agricultural Property is defined as agricultural land or pasture but also specifically includes:
Farmhouses and cottages - but only if they are of a character appropriate to the land or pasture that is in the same occupation
Farm buildings - which must be occupied with and ancillary to the land or pasture - e.g. used for the intensive rearing of livestock or fish
Woodland - so long as it is occupied with and ancillary to the land and pastureGrowing crops - when transferred with the land
Stud farms - engaged in the breeding and rearing of horses and land used for grazing
There is much more to know about APR which cannot be covered in a e-newsletter, and so I suggest that, if you have any agricultural assets, we have a free no-obligation chat at your convenience.
You can call me on +44 7831 379562 (UK), or email me at firstname.lastname@example.org arrange a confidential chat.