Opening conversations to recalibrate rural businesses

Balfours is driving forward plans and projects to recalibrate estates and family farms after the blow inflicted by this government’s reduction of Agricultural Property Relief and Business Property Relief. Added to this is the uncertainty of government support and the Sustainable Farming Incentive, writes Balfours Associate Partner, Chloe Evans BSc (Hons) MRICS, land agent based in Ludlow.

We are working inventively to find solutions for clients’ facing high asset values with low yields who now face unsustainable Inheritance Tax bills. Businesses want to retain estates and farms in their entirety for the critical mass, together with moral and rural community values, while generating additional income. That means thinking creatively to achieve greater productivity and return.

To this end we collaborate with clients and their accountants to develop new ventures and ensure the figures add up, while fitting well alongside other parts of the business. We have steered projects as diverse as TV film contracts to cricket bat willow planting. The key is having the right resources, that is not just land and location, it is also skills and personnel, plus the ability to invest and secure funding.

While most estates and businesses are recalibrating their assets, many are limited in what can be achieved to mitigate potential inheritance tax bills. The £1M tax free limit does not go far against current valuations for family farms or estates.

At Balfours our biggest asset is our team of experienced land agents and staff. It is our training and experience which brings clear thinking and an open mind to estate and farm business planning, quite often the key to a succession plan is facilitating the conversations between family members and ultimately suggesting ideas to enable clients to see the wood from trees and find solutions which work for them.