Farm lifetime transfers post the budget

A large number of farmers are elderly and they – and their advisers – can see immediate negatives to the problem of dying after April 2026 following the autumn Budget.

Gifting with holdover relief

With holdover relief for capital gains tax (CGT) having survived the Labour Budget of 30 October 2024 there has been a flurry of lifetime transfers particularly of agricultural land. The problem is that the potential inheritance tax (IHT) saving that can be achieved with the transfer to the next generation could be outweighed by the potential future CGT liability. It is therefore essential to ensure there is a full understanding of the future plans for the farm and tax calculations as to what is the best choice. Against this background is the concern that the Budget on 30 October was only the ‘starter pack’ of tax changes and there is worse to follow. ...