With increasing development in and around the South West, we recommend that land owners should begin to consider if the land they own attracts the maximum inheritance tax exemptions currently available due to Agricultural Property Relief and Business Property Relief.
A recent case involved a Hampshire Farmer – at the point his death, the land which until his death he had actively farmed, had an agricultural value and also a much higher non agricultural value per acre on some of the land to be developed. Due to some careful lifetime organisation, the deceased had ensured that his family were able to inherit all of the land both agricultural and non agricultural with no inheritance tax liability thus saving his Estate a considerable sum of money.
This lifetime organisation may have involved a Partnership Agreement, a Farming Business Tenancy, an up to date Will and registration at Land Registry of the land in the correct ownership. It may also have included lifetime gifts.
These inheritance tax exemptions are available to be claimed on death provided that certain criteria are met. We recommend you review your paperwork and seek professional advice if necessary.
Inheritance Tax is often said to be a voluntary tax – voluntary in the sense that if all your affairs are in order then you may not have an inheritance tax liability on death at all.
QualitySolicitors Dunn & Baker do not like to see clients pay tax where they may not have to. We would be happy to discuss any aspect of inheritance tax planning with you.
Please contact a member of our Private Client Team to discuss further.
Exeter – 01392 285000
Newton Abbot – 01626 330127
Cullompton – 01884 33818