Further considerations The legislation is yet to be finalised and there has been much speculation of how the announcements could evolve; Could there still be an age exemption to consider? Where that line is drawn would inevitably create winners and losers so, is it fair? Could the £1m exemption amount be increased? Taking this to £5m would change things for a significant number of farms. Could the tax be calculated but only collected if the inherited asset is sold? This seems an equitable and pragmatic outcome and is favoured by those sector organisations lobbying Government but to date no engagement. Could there be a possible extension from seven years to ten years? This would further penalise an aged generation that to date has held land for good reason and compound the sense of unfairness of the announcements. Following the Spring Statement on the 26 March there was no further mention of any of these topics so we wait to see how matters evolve over the summer months before legislation is brought to Government for assent ahead of the 6th April 2026.
Next steps Whether through gifting land, restructuring partnerships, exploring life insurance options, or using trusts, each decision made now will have a lasting impact on the future of your farm. As agricultural accounting specialists we’re here to support you - the farming community - with navigating the complexities of tax planning, minimising your liabilities, and securing the future of your family businesses for generations to come. To discuss your individual circumstances, get in contact with Nick or one of the team by calling 0330 058 6559 or email hello@scruttonbland.co.uk This article was written following the success of our Virtual Farming Briefing event on Thursday 6 March, where experts from across the sector shared their experience and solutions on current challenges in the farming industry. You can watch the recording of this event on our website .
All figures are based on real examples of accounts for current clients – with names and details changed to protect privacy.
For the purposes of this article the following calculations and terms have been used:
“Cover” is a ratio that calculates a company’s margin of protection in servicing its debt and making dividend payments. EBITDA is based on profit excluding depreciation, amortisation, bank interest but after drawings and income tax. Figures are based on the financial years ending 2023 and 2024 for harvest years 2022 and 2023 (arguably indicating a better than ordinary result given the strength of the 2022 harvest result for most farms) It should be noted here that average 2 year EBITDA is calculated by taking the profit – adjusted for drawings and tax, as a crude measure of how much cash a business can generate
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