Published: 04/08/2025 By Chris Powell
The majority of headlines in the farming press over the last 6 months have been all around the changes to Inheritance tax and why you should plan, plan, and plan some more to make sure you don’t gift your farm to the taxman. But, other than not paying large amounts of tax, why else should you worry? Chris Powell, Partner at Symonds & Sampson’s Devizes office, offers some advice.Succession planning, business restructuring, future planning - whatever term you might use – is an area on which I have helped numerous clients throughout my career. No two cases are the same. The reason we do it is simple risk management. Within every business are various enterprises and various people, and each family member must be given due consideration when planning for the future.
Identifying the aims and objectives of family members and gaining an overview of the business is a starting point. From there, you can look at how land is owned, how the business is structured, and then start to consider the tax implications of proposed changes. Each option can then be analysed and discussed to ensure that the primary objectives are achieved.
I recently helped a client who owns and farms 200 acres with house and buildings, and contracts a further 200 acres. Two children wanted to farm whilst the third, the eldest son, works in London. The parents wanted a fair split without jeopardising the farming business and to ensure there is free growth for the business to progress. I considered the values and identified the best way to provide all three children with an asset. We then structured leases and an arrangement by which the two ‘farming’ children benefited from their contribution in running the business, resulting in a fair income split.
It is never too late to start “succession planning” and it is never as complicated as you think. For information on the services we can offer, please click here.
To discuss the future of your farming business, please contact Chris Powell, Partner at our Devizes office on 01380 710535, or our rural experts in your nearest Symonds & Sampson office.