"The start of the new inheritance tax regime was a watershed moment for the farming and family business community. While there have been some important and welcome concessions made since these new rules were initially announced, the new policy is nevertheless a significant departure from the previous regime and will pose significant challenges for those businesses in scope."
"Many would need to devote much more time and attention to their succession planning earlier in their lives to ensure their business could be transferred in the most efficient manner and in a way that gave it the best chance of surviving and thriving over the longer term."
"The new regime will be particularly challenging for farm businesses which may be asset-rich but cash-poor. In certain circumstances it may result in beneficiaries having to sell off land or assets to pay IHT."
A new inheritance tax regime for UK farms and family businesses will take effect, increasing the threshold for taxing inherited farmland from 1m to 2.5m. While the change is welcomed, the tax remains controversial. The first 2.5m of agricultural and business property will receive 100% relief, with 50% relief on amounts over that threshold. Accountants warn that the new rules require businesses to focus on succession planning to ensure efficient transfers and long-term survival, especially for asset-rich but cash-poor farm businesses.
Read at www.theguardian.com
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