Inheritance tax for farms and businesses: discretionary trusts

Overhaul of APR/BPR for farms and family businesses creates inheritance tax headache, but there are potential planning options from discretionary trusts to liquidity planning and asset transfer, explain Sunir Watts, partner, and Natalie Spong, associate at Hunters

The growing number of farms being offered for sale highlights the significant pressures facing the agricultural sector. According to recent analysis by Strutt & Parker, 177 farms were brought to market in England during the first half of the year, the highest level seen in more than two decades.

This trend reflects the increasingly difficult environment many farming businesses now operate in with rising costs, declining returns as production costs continue to outpace income and ongoing uncertainty about passing farms on to the next generation due to inheritance tax (IHT) changes.

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