Will Your Farm Buildings Still Qualify As Agricultural Property?
As you may be aware, a new amendment to planning laws in England allows farm buildings to be re-developed into dwellings in certain circumstances, without requiring special planning permission. Good news for farmers, you might think, but beware!
The effect is that farming families could be caught for extra Inheritance Tax on outbuildings that they have no intention of developing unless they can arrange to claim Business Property Relief on any element of market value above Agricultural Property Relief.
This is because HMRC could argue that all agricultural buildings now have development value as planning permission is no longer required. Thus Farmers could face a problem if only APR and not BPR is due.
It is essential that Farmers take advice and review their assets and usage now to safeguard these valuable reliefs.
Should you require any assistance in this area please contact Green & Co, the Tax experts for farming businesses.
Please note: This article is a commentary on general principles and should not be interpreted as advice for your specific situation.