Agribusiness News November 2024: Sector Focus – Finding the Right Advisor

Is Your Advisor Right For You?

In recent times landowners and tenants face more complex matters when it comes to property. Whether it’s an approach from a wind turbine developer, or a business is progressing their succession planning, having the right advisor in place is imperative to avoid costly and timely delays and errors.

Developers and Wayleaves

When approached by a developer or a utilities firm, it is crucial that you do not commit to any agreement until you have sought further guidance. This can come from a Solicitor and/or a Land Agent. No approach is too small to seek further advice, whether it’s access across a farm track, or a new phone mast.

A request over land you own or tenant can be for one-off access, or a long-term arrangement. Instructing a Land Agent with the relevant experience in the sector, along with knowledge of your local area, can prove advantageous as they will act on your behalf to negotiate terms that are beneficial to your business, both on the ground but also financially.

Solicitors should also be engaged where a contract between parties is required. You may have worked with a local firm for generations, however I would advise that where more specialist advice is required, such as Agricultural Law, using a firm that specialises in this sector can be indispensable. It may seem daunting and costly to engage a new Solicitor, however your business will benefit greatly from an efficient and comprehensive service that will ensure you are protected from the larger developers.

Finances and Tax Matters

Undertaking the annual accounts for your business is unavoidable. But are you getting the support and advice you need from your Accountant? Farming business can present in many ways – Sole Traders, Partnerships, Limited Companies. It’s important that your Accountant understands how tax and VAT operates for agricultural business which can be different to other commercial enterprises.

It is good practice be having at least one meeting through the financial year to discuss matters such as large purchases, changes to the business, and the projection for profit and tax by the year end. Then there should always be a meeting once the annual accounts are produced to review them.

Similar to with Solicitors, your business may have worked with the same firm of accountants for generations, however now we’re in the digital age of accounting are you satisfied with the service you are receiving, or have you considered moving to a firm that can provide the appropriate advice and service for an agricultural business?

The country has also just heard the Labour Government’s budget plan and a major impact on agricultural businesses are the changes to Capital Gains Tax, Inheritance Tax and Agricultural Property Relief. Never before has it been more important to ensure that the advisors you use understand how this may impact your future and can advise you accordingly, whether it involves succession planning or buying or selling land.

Succession Planning

Whether this involves property that is owned, or a tenancy, thought can never begin too early as to how best to transfer to the next generation.

Having a written Will in place that instructs how you wish for land and property to be inherited is strongly recommended. But before committing to any plans, speaking to advisors such as Land Agents, Accountants and Solicitors can provide guidance as to the best route when considering taxes and legal responsibility.

An opportune time to start succession planning is when you come in for your SAF appointment in the Spring. Having an initial, informal chat with your consultant can start the thought process about who you need to speak to. They can also be involved in any kitchen table discussions with family which can sometimes seem like a daunting task.

jennifer.galloway@sac.co.uk