Navigating the Changing Landscape of Family Farm Tax
Following last October’s Autumn Budget, and the changes announced to Agricultural Property Relief (APR) and Business Property Relief (BPR), the need for expert advice in the agricultural sector has never been more needed. Nick Banks, Business Advisory Partner shares examples of how the changes are likely to affect farms.
T he proposed changes from April 2026 are set to have massive implications for family farms on everything from Inheritance Tax (IHT) on family assets to pension planning, Trusts, Capital Gains Tax (CGT) and farming tenancies – even the vehicles used for the business. And farmers across the country are anxiously trying to take stock of the risks and opportunities in their businesses. Then there’s the additional changes to National Minimum Wage and Employer National Insurance to think about, with many farms having diversified in recent years and taking on seasonal workers in hospitality and leisure activities. With so much complexity surrounding the various changes, and the different implications for individual circumstances, those across the industry are feeling the pressure to act quickly.
Real-life farming family case studies We’ve recently worked on several cases that highlight the impact of these changes on family farms, and how proactive steps can reduce liabilities. Hopefully by exploring these real-life examples you can see how these tax changes affect businesses in many different ways, and what strategic action can be taken to alleviate some of the burdens.
Farm owners, especially those running multi-generational family operations, are understandably nervous. And as advisers, it’s a unique and unsatisfactory position to be in to deliver impactful advice without formal legislation beyond the statement of intent in the October 2024 budget. However, there are proactive steps farmers can take now to navigate the shifting tax rules and we’ve already seen many real examples that demonstrate how to approach these challenges successfully. What’s important across the board is not to panic. Whilst there are time-sensitive elements, it’s vital that you make time to make best decision for your circumstances.
4 | SCRUTTON BLAND | AGRICULTURE AND FARMING
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