Succession and tax planning is something that people prefer to put off for another day, however unfortunately the inevitable will not go away. Farmers often shy away from handing the reins to younger members of the family, and just presume that their farm will pass from generation to generation.
Often, this isn’t the case and irrespective of whether decision making and control are transferred, an investigation into your own position and taking precautions now may very well protect the next generation and the farming business from significant tax bills, whilst giving you peace of mind. After all - what have you got to lose?
Tax planning, for capital gains tax and inheritance tax, requires an accurate and often informal overview together with provisional values in advance of taking any action to gift or transfer assets.
The role of the Valuer in tax planning is essential. The figures that are used to undertake planning or in the event, submitted to HMRC, need to be accurate and justifiable. If inappropriate figures are submitted and not supported by a fully qualified Valuer to the “Red Book” standard, HMRC may be able to challenge and request additional tax.
Moule & Co work closely with other professional advisers to offer an initial overview to assess a current tax situation and highlight any potential pitfalls, to ensure that beneficiaries and executors do not become liable.