This title examines traditional farming and diversification in the light of tax and planning procedures.
It explores the current trend in the rural sector to diversify away from pure food production, and the turn toward alternative land use for the purpose of profitable enterprise. It also covers forms of tax planning that are necessary to cope with the upheavals facing all those in farming communities.
Since the last (4th) edition in January 2016, there have been many changes in this area, in particular regarding subsidies, property development and Brexit-led implications, as well as a greater emphasis on probate preparation and dispute. These are as a result of new legislation and key tax cases, which will all be covered in a new edition.
Areas of change since the last edition include:
The general impact of Brexit and the tax implications of the move to the Basic Payment Scheme (BPS)
Making Tax Digital and its impact on farming
The increase in farm values and complexities and the need to ensure strong legal agreements around succession planning
The need to consider issues of undue influence, lifetime gifts and the role of the executor and beneficiary penalties
Modernising agricultural tenancies and tax implications of tenancy makeover
Airbnb: tax treatment regarding furnished holiday lets, property income, the trade of tourism, the impact on farming rents and rent-a-room
Consideration of the 'glamping' diversification and associated tax implications
Furnished holiday letting changes surrounding business property relief and changes to the wear and tear allowance from April 2016
The recent changes to income tax relief on mortgage relief for buy-to-let properties
SDLT reliefs for acquisitions of multiple dwellings
Additional tax planning possibilities where sale of development land is anticipated
HMRC's current approach to business property relief claims for livery businesses
Review of agricultural property relief and trusts
Update on entrepreneurs' relief in respect of woodlands
Detailed review of the CGT implications of heritage property disposals
Proposed scrapping of the Business Property Renovation Allowance in 2017
Changes to the main residence nil-rate band and IHT downsizing relief to IHT planning and wills and the IHT relief for 'closely inherited' main residence
Summary of the new CGT investors' relief
Requirement for non-resident CGT returns in 30 days of disposal
Coverage of accelerated payment notices (APNs)
Coverage of penalties for inaccuracies relating to 'offshore transfer' or an 'offshore matter'
Consideration of HMRC taxing development profits as income as opposed to a capital gain
Summary of 'overage'; the consideration of capital or income identification
'Slice of action' schemes and development land
Explanation of the employment status of agricultural workers
FRS 102 and FRS 105, the farming industry and the impact on stock
Consideration of the HS232 Farm Stock Valuation (2015) (updated April 2016) and its practical implications of stock valuation
Total Income from Farming (TIFF): drop in TIFF, concerns over farm survival and the Agricultural Bill
HS224: Farmers and Market Gardeners – interaction with the current changes