Succession Planning - Preparing for the Next Generation
In the past the farming industry has been notoriously bad at succession planning. This trend is now beginning to change, and most farming families now recognise the importance of succession planning and a good 5-10 year plan to ensure the retiring generation have adequate pensions.
Ownership and occupation of the farm is not always as simple as it sounds, and it is imperative that careful consideration is given to the trading structure. Most commonly this will be a partnership. Partnerships can be complex, and careful consideration must be given to any agreement put in place. Failure to do so could have unintended results which could be costly.
Working With Other Professionals
In conjunction with your accountant we can help ensure that retiring partners are able to claim entrepreneur’s relief where appropriate to reduce any potential Capital Gains Tax Liability. Our dedicated agricultural team can also advise you on Agricultural Property Relief and all aspects of tax planning. The retirement of a partner is often linked with inheritance tax and estate planning which in turn can lead to property being transferred into a Self Invested Personal Pension (SIPP). We can guide you through this often complex area.
Common Issues with Succession Planning
When thinking about a retirement from the Partnership, it is vital to have in mind certain potential pitfalls such as:
- Changes to the structure of your farming business could have consequences for succession rights under an Agricultural Holdings Act Tenancy. Be cautious before taking any actions as the loss of succession rights under such a tenancy could be costly.
- Many farming families are too keen to simply give away land without taking advice. The timing of gifts could have various tax implications.
- A number of farming families risk losing Agricultural Property Relief by giving away land and continuing to derive a benefit, for example by continuing to occupy the farmhouse.
The importance of starting your Tax planning early cannot be over emphasised, and our agricultural team can advise and guide you through every aspect of the process.
We started this matter before the COVID 19 lockdown commenced. Despite the difficulties, Rebekah and all of the staff have dealt with our calls and correspondence in a very efficient manner at all times, well done.Client - Wisbech Office
Why Choose Fraser Dawbarns to Help You?
An Experienced Agricultural Team
The services of a good agricultural succession planning lawyer and a good agent cannot be overstated. At Fraser Dawbarns LLP we have a dedicated Agricultural team with a wealth of knowledge, who can help you avoid some of the pitfalls.
Years of experience working with the agriculture sector has put us in a strong position to help you with a wide range of legal issues relating to farming and agriculture. If you would like more information on how we can help you, your family and your farm, please contact a member of the agriculture team today.
Direct Access To Your Solicitor
Our agriculture team develop a good understanding of our client’s businesses and form close working relationships with our business clients. Clients who wish to arrange an appointment with our commercial solicitors can do so easily, visiting us at any of our offices across East Cambridgeshire and West Norfolk. We can also visit you at your business if you prefer.
At Fraser Dawbarns we recognise that there is no ‘one size fits all’. With our flexible pricing options, we give our clients the choice of different pricing options. You can choose whether you would like us to undertake your work on a fixed fee basis or at an hourly rate, selecting the pricing option that best suits your needs.
No Hidden Charges
Clients opting for our fixed fee service, will know how much they will pay for the matter before we start work. Clients who prefer to be billed at an hourly rate will also be given a realistic range of costs before we begin. Transparency and trustworthiness are important to us and we will never surprise you with hidden charges that were not explained to you at the outset.
Contact Us Today
Our team will help you from the beginning of your case to the end, giving you total peace of mind. If you would like friendly, client focused advice on a wide range of legal issues, get in touch and see how we can help you.
Call or email us today and find out how we can make your life easier.