Readers' forum: Estate planning

I have been asked to advise on estate planning for a farming partnership. Looking into this I have read the HMRC guidance on agricultural relief that provides the following example (at tinyurl.com/yczws8ts).

‘John sells a field on his farm worth £2 000 to his son David on the next-door farm for £500. This means that he is giving David a gift of 75% of the value of the field.

‘David sells the field a year later and uses the £2 000 from the sale to buy another field for £2 000.

‘John dies three years after the sale.

‘When inheritance tax is calculated the original market value (£2 000) of the field (the property that was transferred) rather than the current value of the field (£2 500) is included in John’s estate and is eligible for agricultural relief.

‘However this is reduced by 75% because the original transfer was...