Tax and Agricultural Property

Traditionally, the core activity of the agricultural sector was arable farming or keeping livestock. But increasingly, many owners of agricultural land have diversified into non-farming but complementary activities including holiday lets, leisure including corporate hospitality and equine facilities. With our in-depth knowledge and experience, Ritchie Phillips can help you maximise the potential returns from your agricultural and rural property interests.

Taxation of agricultural property and diversification

Agricultural property is held for many reasons: it may be your family tradition, it may be for lifestyle purposes, or it may be for commercial purposes. In whichever case, agricultural land and rural businesses present their own challenges with, for example, the impact of government policy on agriculture or the possibility of rural diversification. Consideration of capital taxes is usually never far away from the mind of the owner of rural land and in particular the implications of Capital Gains Tax and Inheritance Tax.

Agricultural Property Relief is available to farmers and landowners and is designed to facilitate the transfer of farming land on death. It provides total or partial Inheritance Tax relief which can significantly ease the taxation burden that would otherwise be incurred. However, as you might expect, there are complex rules governing what property qualifies for such relief, along with the rules about occupation of any property, the type of property on the agriculture land and the applicable rates of relief.

We can also help you and your family with long term planning and succession issues so if agriculture is, or is becoming, your family tradition, we can help you can keep the farm in your family’s ownership.

If you would like to discuss agricultural property and or Agricultural Property Relief, please get in touch.