Over the past few years, to maximise income, many farmers and landowners have diversified by renting out land for activities such as caravan parks or horse livery. Whilst this has brought in vital income in the short term, consideration should be given to the effect such activities will have on the availability of the valuable inheritance tax relief on agricultural property.
In order to qualify for Agricultural Property Relief, the land and farm buildings must be used for the purpose of agriculture which includes intensive rearing of animals and grazing land where the owner is responsible for the upkeep.
It is important that you discuss any current and future projects with your accountant to quantify the effect it will have on your estate. Please do not hesitate to get in touch with your usual contact at Drummond Laurie or email email@example.com