Development Land & Farming - A Tax-Planning Guide in One Day

Introduction

This full day seminar will consider how to tax plan for development land in terms of both inheritance tax and capital gains tax for farmers. The course covers tax planning around small and large developments.

It will also consider rollover and entrepreneur's relief.

What You Will Learn

How to move forward with a farming client with potential development land for housing and renewable energy. The need for early understanding of the quantum of potential development, the complexity of the tax advice required and need to incorporate into full farm succession planning. The need to work with quality professionals as a team with a holistic approach to maximising both financial return and tax reliefs whilst minimising aggravation. Looking at NPPF2 in the context of farming together with the impact of the Agriculture Bill and the OTS review of IHT.

• Increased potential for small farm developments, brownfield sites
• The increasing need for houses - 300,000 NPPF2, July 2018
• "When the developer calls" - identification and maximization of opportunities in tax terms
• Working with experienced professionals
• The drive and need for early tax planning at every angle of development projects
• The Ham v Bell case - impact on definition of ownership
• The importance of partnership property of IHT, CGT and general understanding in the context of development land
• The explosion of development values and tax planning opportunities - consideration of the impact of the 20% rate of CGT v ER
• Relaxation of property planning rules to increase planning opportunities
• Impact on farm buildings and bare land - no room for 'redundant' usage
• The Blaney case and BATR - 'just for pleasure' not enough for tax planning
• Balfour mix - OTS review of IHT - trading %
• The equine loss and farm loss claims and impact on BPR commerciality
• The need for legal agreements to protect all tax planning
• The impact of Brexit, Agriculture Bill etc and potential loss of subsidies to commercial operation and protection of development land tax reliefs
• The advantages of 'associated disposals' and other considerations for entrepreneur's relief opportunities
• Equalisation agreements and tax planning around pooling
• Achieving combined goals of maximising IHT relief and CGT relief
• The two uncertainties - date of death and date of development
• Grazing agreement without activity - risk to tax relief on development land - impact of McCall case
• The Allen case and the conacre, impact on trading status
• Weak contract farming agreements - risk to tax reliefs on development land
• 'Front loading' entrepreneur's relief (ER) to maximise £10 million limit
• The need for 'pre transaction' not 'post transaction' tax planning
• Rollover relief - interaction with entrepreneur's relief
• Development land - in or out of the balance sheet?
• Foster - valuation of hope value - "top down" "bottom up"
• The importance and risks of the executor with development risk and values
• Rollover into "AIM" investments and farm improvements
• Rollover relief - guidance for rollover relief
• Deferred consideration - income tax v CGT
• Graham - furnished holiday accommodation - impact of lavish services
• Farm storage and services to achieve potential and tax planning, e.g. the caravan and the hamper
• Farming disputes (James, Ham, Davies, Gee) and the impact on development land
• Overage and slice of action schemes
• Success on DIY liveries and un-serviced farm diversification - the negative for farming - Vigne Upper Tribunal
• The Family Investment Company (FIC) for proceeds
• The risks of FA 2016 dealing in land
• The promotion agreement and tax protection
• Non-agricultural use for brownfield sites - advantages for development
• Renewable energy as development potential
• The need for "cessation" for ER on partnership property
• The luxury of "withdrawal" for ER on non-partnership property
• CGT base cost identification
• Recording of improvements for rollover relief
• Rollover into the farmhouse - the risks
• The impact of principal private residence relief
• The importance to ensure registration of land at early stage
• Rollover - Leeds Cricket