Land agents are often asked; ‘what is the price of land?’ Gone are the days where you can give a broad-brush answer, with recent sales being achieved at record levels. Stick a pin anywhere within the south west and you will see an extreme £/acre variance within just a five-mile radius. Increased demand, often spurred on by non-farmer buyers, has been good news for sellers, injecting much needed cash into their farming businesses.
Speculation is mounting about how the new government will review the reliefs for Capital Gains Tax and Inheritance Tax.
The two main Inheritance tax reliefs are Agricultural Property Relief (APR) and Business Property Relief (BPR). These allow (subject to criteria being met) farms and other family-owned businesses to continue trading without major disruption. Two particular areas where reform is rumoured are:
1. Capping BPR and APR reliefs, potentially to £500,000 per person.
2. Raising the level of trading activity, potentially from 50% to 80%.
If these reliefs are reduced, the 40% tax impact on farms would be severely detrimental.
We will not know for certain what, if any, the changes will be until the autumn budget. However, it is highly likely that changes are coming and will be implemented prior to April 2025. To plan and future proof your business and assist with decision making, it is important to have in place an up-to-date valuation of all assets, both property and live/dead stock. We can help, please call 01458 834288.