Autumn Update for Farmers & Landowners

True Autumn has arrived in the North West, and after weeks of gloomy weather I look forward to this time of year when the tups go out with the ewes at home, and we see the bright, colourful bottoms.

It has been a busy last month for the H&H Land & Estates team, with the uncertainty of the Budget looming and clients worrying about potential tax implications. I have been busy with RICS Redbook Valuation Reports for Capital Taxation purposes.  

The outcome of the Budget for Capital Gains Tax (CGT) was better than we expected. Values for CGT are still re-based on death. However, their combined benefit is now reduced to a position slightly better than we had in 1991 but now with a £1m threshold for combined full relief and no distinction for let land.  

The reductions in the Inheritance Tax (IHT) reliefs from April 2026 are not as severe as had been speculated. They are not capped, and the principles of the reliefs remain the same, but we are going to have to take a more tactical approach to taxation planning.  For example, if land, dwellings, machinery, animals and other assets amount to £4m, a tax bill of £600,000 is due, which is a lot to pay. Good advice from professionals is essential and seeking accurate valuations will be more important than ever before, as they will face more scrutiny.  

On a positive note, the changes to IHT reliefs will get more people talking about succession planning, which is so often the elephant in the room!  Families will have to discuss this and be more willing to hand over the reins to the younger generation to mitigate the IHT bill.     

In other good news, applications to the Sustainable Farming Incentive no longer need to be made through the Expression of Interest process; the application window has now re-opened!