Is your tax planning up to date?

Family businesses are at the heart of many families and vital to our communities. So much hard work is required on a day to day basis that often the question of planning for the future is put to one side with the intention that it will be looked at another day. Unfortunately, in many cases that day never comes. Essential to the ongoing planning of family business, whether farming or other, is looking at the best way of passing the business to the next generation. It is vital to review the vulnerability of the business to inheritance tax on death and ensure that you do what can be done in your lifetime to minimise any liability. As legal advisors we are best placed to identify what tax reliefs may be available and address, with you, any weaknesses we identify in your estate planning such a poorly drafted partnership agreement, one that is out of date or the lack of a partnership agreement; poorly drafting farming agreement (e.g. contract farming agreement) which may have an negative affect on a claim for Business Property Relief, poor farming accounts which do not support the commerciality of the business, badly drafted Will and no powers of attorney. At a time when Inheritance tax is an important source of Government income, HMRC are looking closely at any claims for relief against inheritance tax and therefore careful and comprehensive tax planning is more important than ever