New entrants to farming : succession – event summary

A small but focused group of New Entrants (some accompanied by a parent) met at the Woodlands House Hotel to discuss Succession Planning.

Alan White, a solicitor with Gillespie Macandrews law firm in Edinburgh was the key speaker.   Alan hosted an interactive session discussing tax; legislative and practical issues around  business succession.  Read Alan’s presentation here

Michael Halliday of SAC Consulting also carried out a short presentation on Inheritance Tax, which reinforced Alan’s message.

Key Messages

• Think about the bigger picture- not just about avoiding the tax issue
• What are the long term objectives for the business, and for your family to run it (successfully) when you are gone/retired
• Get a written partnership agreement if you don’t already have one (but remember variation by “course of dealing”)
• It is important that all parties / family members are aware of a business’ succession plan. There should not be any unexpected surprises when a will is being read
• Typically farmland attracts 100% Agricultural Property Relief (APR)
• Assets can be gifted to future heirs through a Potentially Exempt Transfer (PET) and if the donor survives for 7 years, there is no tax to pay