“A more considered, evidence-based approach from the outset could have saved the rural business community both heartache and cost”.‍

Hopes were raised last week that the government may be reconsidering its proposed £1 million cap on Agricultural and Business Reliefs, with suggestions the threshold could rise to £5 million per person, subject to estates holding at least 60% of their value in agricultural or business assets.

While an increase would be welcome, uncertainty around the rules continues to make planning incredibly difficult for farmers, business owners, and their advisers. The existing proposals will have significant implications for succession planning and the long-term sustainability of family-run farms and businesses.

A recent Farmers Weekly article (see this link: https://www.fwi.co.uk/news/opinion/editors-view-growing-hope-on-iht-but-still-no-certainty) highlighted a CENTAX policy report published in August, which outlines a more practical, evidence-based approach to reform. If these recommendations were adopted, they could dramatically reduce the number of local farms and businesses adversely affected, saving both stress and significant planning costs.

As it stands, advisers are left guiding clients through draft legislation that remains uncertain — legislation that will shape important decisions for years to come. It’s clear that a more measured, researched approach from the outset could have spared the rural business community much of this heartache, and alot of avoidable cost.

Read the CENTAX Policy Report here: https://centax.org.uk/policy-brief-the-impact-of-changes-to-inheritance-tax-on-farm-estates/

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