Within the report, attention does fall on
Agricultural Property Relief (APR).
I hesitate to explore in full the 107-page report which, among other matters, touches upon gifts during lifetime and to charity, the interaction between Inheritance Tax and Capital Gains Tax, the Residence Nil Rate Band, the taxation of Trusts together with Business Property Relief (BPR) and
Agricultural Property Relief (APR).
The TFA believes landlords should only be able to obtain
Agricultural Property Relief from inheritance tax if they let their land for 10 years or more.
The aim of the research was to gain insight into peoples' understanding of
Agricultural Property Relief ('APR') and Business Property Relief ('BPR') and how the reliefs are used in succession planning.
? To preserve business property/
agricultural property relief - if all assets are left to a surviving spouse on the first death, the availability of business property relief and/or
agricultural property relief could be wasted, as the assets will pass exempt to the surviving spouse in any event.
However, diversification comes with risks, specifically farmers' ability to qualify for
Agricultural Property Relief from inheritance tax as this often does not apply to many forms of diversification and can be worth tens or hundreds of thousands of pounds."
"With much higher demand than supply," he said, "landlords can offer short-terms for high rents at very little risk and obtain into the bargain, 100%
agricultural property relief from Inheritance Tax.
However, a Scottish Government IN FOCUS
Agricultural property relief (APR) and business property relief (BPR) Morag Watson of accountant Scott-Moncrieffargues that: "Those whose livelihood is within the rural sector, particularly farmers and landowners, could be forgiven for thinking someone was out to get them.
Mr Hartlebury, partner at Midland practice dhjh Chartered Accountants, said the Government would now be looking to drop business property relief and
agricultural property relief, both of which can slash the amount of inheritance tax payable.
But added the industry was relieved that the chancellor had not reviewed the
Agricultural Property Relief rules which enables farmers to pass agricultural holding onto the next generation free of Inheritance Tax.
Some
agricultural property relief could possibly be achieved on the buildings.
The two main inheritance tax reliefs to which farmers may be entitled are
agricultural property relief (APR) and business property relief (BPR).