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, APR 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 APR to be extended to include ‘environmental management’ - impact on APR - the detail?
• HMRC increased enquiries into APR - 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
• The tribunal dislike of SDLT ambulance chasers on mixed use post Bewley and considers Henderson acquisition
• The furnished holiday cottage fiasco - what to do now
• The TRS registration and reporting and impact on BPR - protection of 100% BPR
• The importance of the interaction of valuations - Foster - hope value and need for valuation of chattels
• Where are we with capital tax planning on development land
• The question of BPR and business CGT reliefs and storage - Vigne and Graham (post Budget 2024)
• The importance of the Butler wedding barn case on “holding investments” s.105(3)
• Caravans, livery and furnished holiday accommodation - dramatic changes, lobbying and apparent “U” turns - practical solution
• IHT - a refresher in the basic rules including BPR and APR claims
• CGT - a refresher in and changes to Business Asset Disposal Relief
• CGT - the 60-day reporting regime and the advantages thereof
• CGT - Private Residence Relief - where are we now? A round up of cases, e.g. Lee and practical advice
• SDLT - an update of recent changes to the regime plus the Budget removal of Mixed Dwelling Relief
• 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.