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Tax planning for farms

24 April 2018 / Julie Butler
Issue: 4644 / Categories: Comment & Analysis

The farmhouse


  • Tax planning around farms and farm properties can be complicated by family relationships.
  • Jointly-owned properties can prejudice valuable tax reliefs.
  • VAT savings can arise because a new residential property after demolition would be a ‘new build’ and zero rated.
  • Advantage can be taken of the 5% rate if farm residences are unoccupied for two years before the work starts.
  • Expenditure on improvements and repairs to a farmhouse should be subject to analysis regarding business and non-business use.

With the current elderly profile of farm ownership in the UK much tax planning is needed around succession and potential sales of the whole farm – or perhaps just the farmhouse – to raise liquid funds. Many UK farms are owned in joint names and this can cause problems on the...

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