Scrutton Bland’s Jack Deal says he is seeking solutions for farmers after fallout from Labour’s first Budget
As we head into the New Year, I’ve been reflecting on a busy few months at Scrutton Bland.
At the end of October, we were delighted to acquire Jacobs Allen, and we look forward to working closely alongside Keith, Sheila, Chris and the rest of the team in 2025.
Our advisors have been flat out advising clients in the lead up to - and dealing with the fallout from - Labour’s first Budget on 30 October.
It wasn’t a friendly one for businesses, with many of our clients affected by the announcements, and most planning for significant increases to employment costs in 2025.
The Budget also included huge announcements affecting the agricultural sector.
Many farmers are facing unexpected cuts to their Basic Payment Scheme payments in 2025, alongside those rises in employment costs.
They’re also facing uncertainty around the future of their farms due to the announced changes to Agricultural Property Relief (APR) and Business Property Relief (BPR).
These changes have stolen the headlines, with protests in London and many well-known voices speaking out against the ‘Family Farm Tax.’
Media attention has been dominated by the reasons for or against the changes, and disagreements about how many farms will be affected by them.
But with the farming sector such an important one for us at Scrutton Bland, we’ve been focusing on the practical solutions. We help by working out how to get great outcomes for our clients even if legislation moves against them.
First up, we’re helping clients quantify their new exposure to Inheritance Tax. Before they take time consuming and potentially expensive tax planning, they need to know the size of the issue they’re trying to solve.
Then, we explore options for mitigating this tax exposure. This may involve gifts during an individual’s lifetime, or the use of trusts, partnerships or companies.
Despite the noise around Inheritance Tax, this shouldn’t be a tax driven exercise. It’s important that farming families have a plan they are comfortable with, and which doesn’t expose them to non-tax risks. Ideally, these preferred solutions can work around the current and incoming tax legislation.
It’s worth remembering that our advice is currently based on what we’ve been told by the Government. We expect to see draft legislation in February/March 2025, and we’re encouraging clients to take care with making life-changing decisions before then.
Our aim is to help clients avoid unaffordable Inheritance Tax liabilities. There will however be some that don’t manage to do this, and the next step of planning in those cases is to look at funding that may involve insuring tax risks, selling assets, or funding out of working capital.
Looking forward, we’re delighted to again be working with The Suffolk Agricultural Association and Fram Farmers on our 2025 Virtual Farming Breakfast Briefing. Held online on 6 March 2025, it’s essential viewing for those working in the sector, and we’ll be following up on all the Budget announcements, four months on. You can sign up to join here [Add this link Webinar Registration - Zoom]
Jack Deal
Business Advisory Partner
Jack.deal@scruttonbland.co.uk
0330 058 6559
Jack is a Business Advisory Partner working across East Anglia, with a focus on the west of the region.
Jack advises privately owned businesses, particularly farmers, landowners and diversified rural businesses. He specialises in business and family strategic planning, Capital Gains Tax and Inheritance Tax planning, and digital accounting.