Partner & Head of Agriculture
Challenges facing the market
The margins for agricultural commodities remain volatile, making it harder for rural businesses to turn a profit.
Combining this with short to medium-term doubts on longstanding schemes such as Basic Payment and a threat to renewable subsidies, means that looking for ways to make the most out of current business, as well as seeking to diversify where possible, is becoming more important. Ensuring you have the right framework in place to maximise existing profits has never been more crucial. Legal advice around which corporate structures are going to deliver more value, which partnership model will bring better tax efficiencies, as well as guidance on Capital Gains Tax, Stamp Duty Land Tax and Inheritance Tax, will all require expert input and consideration.
Knowing your short, medium and long-term strategy will pave the way for a smooth transition into retirement.
All too often, we see “later-living planning” left too late. Not preparing early enough can become a key wealth planning problem for farmers, as well as have knock-on impacts on whether the farm remains a viable business in the future. We help you to arrange your personal rural affairs, from estate and wealth management and identifying and preparing your successor, to advising around compensating other potential beneficiaries. Changes to your trading position or partnership structure can have unwitting consequences for ownership of the farm. It also impacts your tax position. Farm owners must plan well in advance to limit the damage of leaving the farm without confident and experienced successors.
With the growing need for many farming businesses to specialise or diversify, structuring your new ventures needs close attention.
Introducing new revenue streams in the form of tourist attractions, renewable sites and portioning off land for redevelopment to name but a few, can impact your tax position greatly. Our agriculture experts can support you to separate out land parcels, amend your leasing and tenancy agreements, deal with planning issues, adjust your contractual agreements to improve flexibility and help restructure your business, as well as making you aware of the tax implications for each. Being able to understand fully the financial and tax implications of starting up new areas of business, will help you to make smarter decisions that will not only protect the future of the farm, but also drive profits.
All the latest views and insights
on current matters within Agriculture.
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