Tax Planning for Farm and Land Diversification, Third Edition examines traditional farming and diversification in the light of tax and planning procedures. It explores the current trend to diversify away from pure food production, and the turn toward alternative land use for the purpose of profitable enterprise. It also covers forms of tax planning that are necessary to cope with the upheavals facing all those in farming communities.
This new edition shows you how to protect the high value of farms and landed estates through the process of diversification, and how to handle the rollover of gain, from the sale of a business, into a farm or estate.
Every chapter of Tax Planning for Farm and Land Diversification has been updated to take in the numerous changes in agriculture since the previous edition.
This well-timed third edition is up to date to all relevant legislation and covers:
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CGT reforms and further changes in the coalition budget
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The change from Business Asset Taper Relief to Entrepreneurs’ Relief
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The move away from production based subsidies to area based subsidies
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Single Farm Payment and the agricultural reviews
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Biodiversity and farm gate – including the commercial and tax implications
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The behaviour-based penalty system associated with income tax, CGT and inheritance tax
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HMRC’s close scrutiny of all diversified businesses
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Coverage of trusts updated to Finance Act 2006, Finance (No 2) Act 2010 and Perpetuities and Accumulations Act 2009
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References to the most recent Planning Guidance changes and the new ‘localism’ agenda of the Coalition Government
This is a significant book for all those who want to gain a greater understanding of the implications of diversifying from traditional farming and the taxes involved in the process.
Farm tax advisers, farm accountants, land agents and agricultural colleges will find this a very useful handbook, as will tax advisers, accountants and solicitors who do not have agricultural experience, but who wish to gain a general understanding of farming, diversification, tax planning and the big changes that are facing the agricultural world.
Reviews:
The first edition of Tax Planning for Farm and Land Diversification was essentially an easy read tax guide published at a time when diversification was just a subsidiary source of income to the trade of farming. There have been vast changes since the first edition – alternative land use is often the most profitable activity within the farm trade and traditional farming can only produce a very low or negative return.
The second edition covers a host of new subjects – the Mid Term Review (MTR) of the Common Agricultural Policy (CAP), Stamp Duty Land Tax, updates on the attacks on the inheritance tax reliefs of the farmhouse, the growth of conservation grants and subsidies together with the introduction of the tax position of “new farmers” in the form of “asset stripper” and “lifestyle farmer”.
This edition represents an effective part two to the part one already introduced. The subject has grown and the complexity of tax planning has grown with the subject. The book is not just aimed at the tax adviser but also those directly involved in the industry, e.g. farmers, landowners, land agents and estate advisers. There are those who would argue that this causes problems for the author in the achievement of balance of presentation. However, the book is very readable and many extremely complex subjects are handled in a charming manner.
There are chapters from other contributors on subjects such as VAT, Divorce, Wills and Trusts. Clearly the author writes the book around the management of a vibrant practice. This has the advantage of the book dealing with the complex matters of sheltering development gains and IHT protection with a very practical approach.
This is the work of someone who handles the subject matter daily in the office. It is evident that some subjects are well rehearsed and feature regularly in tax reports, lectures and seminars and other subjects are fresh and new. This can result in a change of style in some chapters. The theme is, however, fundamentally the same throughout – an easy approach to an important subject. Property prices have increased since the first edition and this adds weight to the tax planning subjects.
I understand that Butler’s dream is to be able to find the book in the offices of every land agent, farm and estate office whilst also appearing in the tax library of most accountancy practices.
There is no doubt that it is a “must read” for all practitioners who act for farmers (real, reluctant, lifestyle and new) and landowners. It is especially useful for those legitimately considering sheltering development profits from capital gains tax and elements of wealth (small or vast) from inheritance tax. It can be used as a very basic guide but extends all the way through to semi-advanced tax planning.
I have used the first edition extensively in my specialist area of enquiry work and have found it useful in the need to establish business economic models and to achieve a basic understanding of all areas of farming and diversification. My review of the second edition is that it will facilitate this further. There are numerous references to the Inspectors Manuals themselves which help the interaction of simple understanding of the tax rules, what the tax inspectors themselves are looking for and potential tax planning.
Mark Witt, Tax Clinic Southern Limited, Enquiry Specialist
