Tax Planning – Farmland

With the many tax reliefs available, there are opportunities for tax planning with farmland, in order to mitigate the liabilities that may arise in the absence of planning. Introduction Farming and land ownership are both long-term activities in which businesses have traditionally been passed down the generations. As farmers have held their capital in relatively illiquid assets, such as land and buildings, capital based taxation has been severely damaging to farms and farmland in the past. However, there are some capital tax reliefs that can mitigate the impact. Where may investment in farmland be appropriate? Tax planning with farmland may be appropriate where: the potential inheritance tax (IHT) reliefs are attractive significant capital gains from the sale of business assets need to be ... »