London: +44 (0)20 7236 2601
St Albans: +44 (0)1727 869141
Rickmansworth: +44 (0) 1923 771010
Milton Keynes: +44 (0)1908 605552

Planning laws and IHT for farmers

Under the new planning rules, where the necessary conditions are met, it appears farm buildings may be converted into up to three residential dwellings without obtaining the normal planning permission.  This relaxation of the rules should make developments easier and is likely to increase the overall value of some farms.  However, for inheritance tax purposes agricultural property relief should provide up to 100% relief for qualifying farm assets such as land, farm buildings, etc. but only for the ‘agricultural value’ of land.  That means that any value attributable to development potential will not benefit from inheritance tax relief, unless the conditions for business property relief are also met.

As well as considering the agricultural value as compared to the market value of land, land-owners should carefully review the availability of reliefs and consider whether any actions should be taken now to improve the position

 

 

 

 

 

 

 

 

 

Date: 2nd July, 2014
Author: Cathy Corns

SHARE THIS

Articles from this Author

Contact Business Service Partners

Choose from the drop down menu below to select a Partner to contact.

Tweet

“Good luck to everyone who has also made it as a finalist, I look forward to awards evening later on in the year”-L… twitter.com/i/web/status/8…

Michael Lapham shortlisted in the Money Management Financial Planner Awards 2017 bit.ly/2fL8VXBtwitter.com/i/web/status/8…

Follow

LinkedIn

For the latest Mercer & Hole news, visit our LinkedIn page mercer-&-hole

Click here to follow us on LinkedIn