Farming Connect have announced that they will conduct a series of events giving advice to those working in the agricultural industry who are worried about how changes to rates of inheritance tax announced recently could affect them. In October 2024, the UK Government announced that the tax relief for those who inherit farms would only extend to the first £1 million.
The news has caused significant alarm within the industry and has sparked protests that are ongoing.
Farming Connect have announced 10 events to be held across Wales that will invite experts with experience of working in farm inheritance tax and succession planning to give advice to farmers on how to plan for the future and prepare for the changes.
In a statement Dr Nerys Llywelyn Jones from Agri Advisor, who will be taking part in the event, the importance of succession planning. She said:
“The changes could lead to more transfers between generations before death but reservation of benefits rules apply and therefore this must be considered carefully”
“If these rules are broken, for example if the gift donor is still benefiting in some way from the estate, for example living in the farmhouse, it may be referred to as a “failed PET” and will then become subject to IHT.’’
Before the changes were announced farmers were advised to continue farming as long as possible as they were eligible for Agricultural Property Relief (APR) which meant that there was no need for those who inherited their property to pay inheritance tax. Dr Jones sees that the new threshold of £1 million tax free will mean more scrutiny on pricing and farmer’s ensuring that assets are priced correctly. Dr Jones said:
“This will apply possibly to assets that they are seeking APR and Business Property Relief (BPR) on, including those assets within the £1m cap.’’
She also advises farmers to seek further professional advice to put plans in place:
“For some, small changes will enable them to maximise the new IHT regime and the reliefs available but for others significant planning and consideration will be required with some difficult decisions to be made.’’
Solicitors and accountants will be on hand in the events to answer questions and give advice. Here is a list of the plant events:
20/01/25 – Ivy Bush Royal Hotel, Carmarthen SA31 1LG
21/01/25 – Monmouthshire Livestock Centre, Raglan, NP15 2B
22/01/25 – County Showground, Withybush, Haverfordwest, Pembrokeshire, SA62 4BW
27/01/25 – The Barn, Moody Cow, Bargoed Farm, Llwyncelyn, Aberaeron, SA46 0HL
28/01/25 – Maesteg Golf Club, Maesteg, CF34 9PR
03/02/25 – Coleg Cambria – Llysfasi, Llysfasi, Ruthin LL15 2LB
03/02/25 – Celtic Royal Hotel, Caernarfon, LL55 1AY
05/02/25 – The Elephant & Castle Hotel, Newtown, SY16 2BQ
10/02/25 – Hafod a Hendre, Royal Welsh Showground, Builth Wells, LD2 3SY
11/02/25 – Rhyd-y-main Hall, Dolgellau, Gwynedd, LL40 2AS
You can find more information about the event and about other events organised by farming Connect by visiting their website.
