Choose not to pay Inheritance Tax

Case Study

Protecting Farms from Inheritence Tax

When a farm has been in the family for generations and suddenly it would seem that the next generation are not inclined to pursue a career in agriculture farming families face some major hurdles.

Husband and Wife farmers existing clients of Shacklocks recently faced this dilemma. In order for them to qualify for Agricultural Property Relief (APR) and therefore protect the farm from Inheritance Tax (IHT) the farm would still need to be working. Indeed into their early 70’s this is exactly what this couple did. With fears of what would happen if ill health struck and knowing the children had no interest in continuing the family business they sought our help.

We were able to put in place arrangements where we could protect the children’s inheritance from the IHT bill whilst allowing our clients to retire and still remain in the family home enabling them to enjoy their retirement and still leave an inheritance for the children. In this way, the farming couple were able to make their own decision on the timing of their retirement from farming without having this dictated by IHT concerns.