Take early, informed action to navigate the changes to Inheritance Tax in the UK effectively.
Take early, informed action to navigate the changes to Inheritance Tax in the UK effectively. Together, we’ll ensure your land, business, and family legacy remain intact for future generations.
The 2024 budget introduced several shifts in inheritance tax (IHT) policies that could have significant implications for farmers aiming to pass their estates down to the next generation.
While the government has chosen to freeze the inheritance tax threshold at £325,000 until at least 2028, the value of agricultural land and property continues to rise sharply.
As a result, more farming estates are being caught within the IHT net, increasing the importance of strategic estate planning.
The 2024 budget introduced several shifts in inheritance tax (IHT) policies that could have significant implications for farmers aiming to pass their estates down to the next generation.
While the government has chosen to freeze the inheritance tax threshold at £325,000 until at least 2028, the value of agricultural land and property continues to rise sharply.
As a result, more farming estates are being caught within the IHT net, increasing the importance of strategic estate planning.
Inheritance tax is applied at a rate of 40% on the portion of an estate exceeding the £325,000 threshold. For farmers, exemptions such as Agricultural Property Relief (APR) and Business Property Relief (BPR) are key tools to mitigate this liability.
These reliefs can reduce the taxable value of qualifying agricultural and business assets by up to 100%. However, the 2024 budget has introduced changes that tighten the criteria for eligibility.
Inheritance tax is applied at a rate of 40% on the portion of an estate exceeding the £325,000 threshold. For farmers, exemptions such as Agricultural Property Relief (APR) and Business Relief (BR) are key tools to mitigate this liability.
These reliefs can reduce the taxable value of qualifying agricultural and business assets by up to 100%. However, the 2024 budget has introduced changes that tighten the criteria for eligibility.
For many farming families, the farm represents more than just a business—it is a legacy that spans generations.
The tightening of APR rules and the stagnant IHT threshold threaten this legacy, as estates become increasingly vulnerable to higher tax liabilities.
This could lead to financial strain, especially for small or mid-sized family farms that lack the cash reserves to pay large tax bills.
For many farming families, the farm represents more than just a business—it is a legacy that spans generations.
The tightening of APR rules and the stagnant IHT threshold threaten this legacy, as estates become increasingly vulnerable to higher tax liabilities.
This could lead to financial strain, especially for small or mid-sized family farms that lack the cash reserves to pay large tax bills.
Transferring assets into family partnerships or trusts can offer flexibility and tax benefits, potentially reducing the overall IHT liability while also providing ability for shared ownership, so the farm remains within the family.
Having the right insurance in place on your life and written in trust can provide the funds required to settle potential IHT liabilities.
Inheritance tax rules are complex, and the recent budget changes have added more layers of regulation.
Engaging specialists from Concept Financial Services in agricultural tax planning can help tailor a strategy that maximizes reliefs while preserving your farm’s legacy.
The freeze on IHT thresholds coupled with rising asset values signals a growing challenge for farmers. While the budget has introduced these tighter guidelines, it also underscores the importance of long-term planning.
Farmers who take early, informed action can navigate these changes effectively, ensuring that their land, business, and family legacy remain intact for future generations
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