Background
Our client ‘Mr Hay’ is a partner in a multi-generational farming partnership with significant assets. With some of the family involved in the business and some not, Mr Hay was concerned about succession and fairness.
How GWA helped
Taxation around farming is complicated. As the average age of farmers in the UK continues to rise and farm businesses diversify, it is important to consider if the right structures and strategies are in places to enable future generations to continue farming, if they wish to, without unexpected tax liabilities.
GWA carried out a series of assessments that considered the inheritance tax (IHT) exposure of the partnership. We recommended transferring the business assets to the partnership and in doing so reduced the business’s exposure to IHT.
We also recommended transferring assets to a discretionary trust to benefit current and future family members who are not involved in the farming business.
This feeling of fairness, whether the family members kept their involvement with farming or not, was particularly important to Mr Hay.
