Inheritance Tax Planning

Thinking of selling land or farm property?

You’re the expert in your field and we’re the experts in financial advice for farmers.

farmer walking in a wheat field

Thinking about your farm's future?

You’ve worked hard to secure the farming business you’ve built up.

We can’t help you secure the best price for your produce or your land, but our experts can advise on how to avoid some of the pitfalls of Inheritance Tax and investment planning for the future.

As the UK's leading rural insurer we have a wealth of knowledge and expertise and we understand the farming community.

You may be concerned about:

  • Farm rental income
  • Reductions in your income as subsidies are phased out
  • The length of time it takes to sell land
  • Dealing with experienced developers.

We understand you have lots to think about and whilst we can’t advise you on any of these matters, we recognise you want to do all you can to safeguard your financial future.

Lots to think about, we can help

Farmers tell us that the sale of land is a consideration when planning the future of their business, something that will only happen more as farming subsidies change and uncertainties around land values and rental incomes persist.

Land Agents and solicitors can reduce worries when dealing with developers, but our financial experts can ensure you are making the most of your investments and pension opportunities at the same time. This will include reviewing your Inheritance Tax liabilities and any Agricultural and Business Property Relief you may benefit from, helping you to make informed financial decisions about your farm.

You and your family may have worked the farm for generations, so by speaking to a financial expert they can help you review and discuss options including:

Inheritance Tax (IHT) – There are some very generous tax reliefs available to farmers that can help to reduce or even eliminate IHT on farming and other qualifying business assets, including the farmhouse, if certain conditions are satisfied.

Agricultural Property Relief (APR) – This can give a 50% or 100% reduction on the amount of Inheritance Tax payable on farmland, farm buildings, farmhouses and farm cottages provided the qualifying conditions are met. It’s a very important relief, but there are some pitfalls that can lead to its loss.

APR is only available on the agricultural value of land or property; it isn’t available on any higher development value.

Business Property Relief (BPR) – This can reduce the amount of Inheritance Tax payable on certain types of businesses and business assets by 50% or 100%. It’s a very important relief, which could allow you to pass down a qualifying business without being hit with a large tax bill.

Getting the right advice and reviewing your situation regularly can help you make the most of the tax reliefs available.

Farm land and other business assets may qualify for Agricultural or Business Property Relief that could help protect some or all of the value from Inheritance Tax. If you decide to sell and not reinvest the proceeds into other qualifying property, you may be exposing your family to a substantial IHT liability.

Thinking of investing – When you’ve sold the land and have the funds, there are many investment options available including ISAs, bonds and pensions for you and your family and we can offer you expert advice on finding the right ones. As well as our own range of funds we offer funds from carefully selected providers, giving you a choice of investment options. Our investment team currently manage funds worth in excess of £19 billion.

Why choose NFU Mutual?

It’s our mutuality which sets us apart. We’re run for you. Our financial experts want to turn your plans into reality speak to an NFU Mutual Financial Adviser who can help you get on the right path to achieving your financial goals.

NFU Mutual Financial Advisers will work with you to help you create your plan for the future - they will advise on the most appropriate solutions with regards to protection, retirement planning and investments.

Remember if you plan early, you’ll have more options to consider.

Pop into your local NFU Mutual agency office or fill in this form to book an appointment.

The value of your investment can rise or fall and you may get back less than you have invested.

NFU Mutual Financial Advisers advise on NFU Mutual products and selected products from specialist providers. When you contact us we'll explain the advice services we offer and the charges.

Financial advice is provided by NFU Mutual Select Investments Limited.

Please note that Inheritance Tax advice is not regulated by the Financial Conduct Authority or the Prudential Regulation Authority