SDLT, IHT & CGT Interaction on Farms - A Practical Guide

Introduction

Capital taxes are an area that is ever evolving.

This session will provide an update of the recent changes in CGT, IHT, and SDLT, particularly following the Budget 2024, AR and farming for the environment from April 2025 as well as the loss of Mixed Dwelling Relief for SDLT.

It will also provide a refresher in some of the more established areas and consider those of the recent recommendations made by the Office of Tax Simplification that have been sidelined and how that impacts on tax planning.

We will consider the Budget 2024 changes to furnished holiday accommodation which were omitted from the Finance Bill and the need for the new government to focus on the property income in the investment v trading - the ‘Brightline’ argument is massive. In the meantime, farms must make their quasi-trading operations as robust as possible.

Capital taxes is a fast-changing part of tax that will affect all clients at one time or another and one that can easily lead to professional indemnity claims due to the quantum of potential problem and claim!

This virtual classroom session will be practical in nature rather than detailed tax technical.

What You Will Learn

There is a lot happening in all these taxes and the session will focus on:

• The Budget 2024 headline of AR to be extended to include ‘environmental management’ - impact on APR - the detail?
• Proposed drop to 50% AR/BR subject to £1million allowance - will it be April 2026 or April 2027?
• Lifetime transfers pre-April 2026 (or 2027) - the recent GROB (‘Gifts with Reservation of Benefit’) case of Chugtai
• HMRC increased enquiries into AR - impact on the farmhouse
• Rollover relief and why it’s so important with drop in BADR limits to £1million
• The flurry of negative ER cases, e.g. Stolkein and Delaney
• The role of the ‘rollover buyer’ in farm transactions
• The mixed usage cases of Withers and Averdieck and the constant stream of new tribunal cases, e.g. Holding and Suterwalla win
• The tribunal dislike of SDLT ambulance chasers on mixed use post Bewley and considers Henderson acquisition
• The furnished holiday cottage tax change - what to do now, impact of Tanner
• The TRS registration and reporting and impact on BR - protection of 100% BR
• The importance of the interaction of valuations - Foster - hope value, consideration of compulsory purchase and need for valuation of chattels
• Where are we with capital tax planning on development land?
• The question of BR and business CGT reliefs and storage - Vigne and Graham (post Autumn Budget 2024)
• The importance of the Butler wedding barn case on ‘holding investments’ s.105(3) and the new case of Tanner
• IHT - a refresher on the basic rules including BR and AR claims
• CGT - a refresher on and changes to Business Asset Disposal Relief
• CGT - Private Residence Relief - where are we now? A round up of cases, e.g. Lee and practical advice
• Trusts - the latest in reporting to HMRC. Both IHT and CGT including TRS registration of partnership property for farms - practical points

Recording of live sessions: Soon after the Learn Live session has taken place you will be able to go back and access the recording - should you wish to revisit the material discussed.