AS WELSH farming families consider the implications of the UK government’s plan to limit 100% agricultural and business relief for inheritance tax (IHT) to the first £1m of value, Farming Connect is launching a roadshow of events across Wales to help businesses consider different options for protecting their assets including succession planning.

The Autumn Budget on 30 October included significant proposed changes to IHT rules and these will impact many farm businesses. 

Demand for the advice available through Farming Connect is anticipated to be high as a result therefore it is holding 10 events where experts in farm IHT issues and succession planning will provide important guidance on the planned measures and advise on how farmers can mitigate the effects of the change.

They will include Dr Nerys Llewelyn Jones, of Agri Advisor, who says the changes further emphasise the importance of timely and effective succession planning.

For example, the seven-year rule still applies which means someone could transfer an asset at least seven years before their death, without having to pay IHT on that asset. These are referred to as Potentially Exempt Transfers (PETs)

“The changes could lead to more transfers between generations before death but reservation of benefits rules apply and therefore this must be considered carefully,’’ says Dr Llewelyn Jones.

“If these rules are broken, for example if the gift donor is still benefiting in some way from the estate, for example living in the farmhouse, it may be referred to as a “failed PET” and will then become subject to IHT.’’

She anticipates heavier scrutiny on valuations and a greater need to have assets valued. 

Until now, farmers will have been advised to essentially “keep farming” for as long as possible to qualify for Agricultural Property Relief (APR). 

“This will apply possibly to assets that they are seeking APR and Business Property Relief (BPR) on, including those assets within the £1m cap’’ says Dr Llewelyn Jones.

However, there will be changes to the legal advice previously given as a result of the Budget and she strongly advises farmers to seek professional advice and put a plan in place.  

“For some, small changes will enable them to maximise the new IHT regime and the reliefs available but for others significant planning and consideration will be required with some difficult decisions to be made,’’ says Dr Llewelyn Jones.

Solicitors, accountants and land agents will be on hand to answer questions.

A comprehensive package of support is available through Farming Connect including facilitated family succession meetings; a succession review to assess the tax position and subsidised business and legal advice. For more information contact your local Development Officer, or call the Service Centre.

The schedule of events is as follows:

20/01/25 – Ivy Bush Royal Hotel, Carmarthen SA31 1LG

21/01/25 – Monmouthshire Livestock Centre, Raglan, NP15 2B

22/01/25 – County Showground, Withybush, Haverfordwest, Pembrokeshire, SA62 4BW

27/01/25 – The Barn, Moody Cow, Bargoed Farm, Llwyncelyn, Aberaeron, SA46 0HL

28/01/25 – Maesteg Golf Club, Maesteg, CF34 9PR

03/02/25 – Coleg Cambria – Llysfasi, Llysfasi, Ruthin LL15 2LB

03/02/25 – Celtic Royal Hotel, Caernarfon, LL55 1AY

05/02/25 – The Elephant & Castle Hotel, Newtown, SY16 2BQ

10/02/25 – Hafod a Hendre, Royal Welsh Showground, Builth Wells, LD2 3SY

11/02/25 – Rhyd-y-main Hall, Dolgellau, Gwynedd, LL40 2AS

For further details visit https://businesswales.gov.wales/farmingconnect/whats-on

A CALL to convert barns at a redundant north Pembrokeshire farm close to an Iron Age defended farmstead to holiday lets has been approved by county planners.

In an application before Pembrokeshire County Council planners, Ariana Grammaticas and Alewyn Muntingh sought permission for the conversion of two farm buildings at Pencraig Fawr, Llangolman, to three holiday lets.

A supporting statement through agent GMW Design said: “The existing farm is now redundant, the need for livestock and farming is no longer a requirement, my clients wish to utilise the existing farm buildings in a more efficient and long-term use to provide holiday accommodation.

“The buildings’ use for farming is redundant and it is considered that the building is of a style and scale that would lend itself to Holiday accommodation with little alteration to its current form. They have the benefit of having their own curtilage, with a little improvement to the site surrounding they lend themselves comfortably for conversion.

“The vision for the conversion proposals is a development that fits comfortably within the existing area without the need for reconstruction or external alteration to facilitate the conversions. The buildings are located off a former farmyard area and close to the existing farmhouse of Pencraig Fawr.”

Pencraig Fawr is some 250 metres from Pencraig-Fawr Camp, a scheduled ancient monument defended farmstead, which probably dates to the Iron Age period (c. 800 BC – AD 43), an officer report says.

It adds: “Cadw have raised no objection to the proposal with respect to any potential impact upon the heritage asset nor how it is experienced, advising that intervening topography, buildings and vegetation block all views between the monument and the buildings for which conversion is proposed. The access track is within the identified significant view and passes close to the asset.

“However, no changes are planned to this route and the proposal is unlikely to generate a significant amount of traffic. As such, the proposed development will not have any significant adverse impact upon on the way that the monument is experienced, understood, and appreciated and consequently will have no impact on the setting of scheduled monument.”

The application was conditionally approved by planners.

AN OFFICIAL special farming role for Pembrokeshire’s deputy leader is to be established following a call made to full council, the first time the council has had such a role for a senior member.

In a question to council leader Cllr Jon Harvey, heard at the December meeting of Pembrokeshire County Council’s full council meeting, Conservative group leader Cllr Di Clements asked: “With the recent changes in the budget from the UK Labour Government on Inheritance Tax and Agricultural Property Relief, many Pembrokeshire farmers are feeling concerned for the future of their family farms, many in Pembrokeshire which have been in the same family for generations.

“I have always found it disappointing that in all the years I have been a councillor, and the major contribution farming has to this county’s economic, cultural and environmental well-being, there has never been a Cabinet Member’s title with rural affairs or farming, or agriculture within it.

“To show that this council recognises the importance of agriculture, and the hundreds of millions of pounds generated by farming, will the Leader consider including it in one of the titles of his Cabinet Members’ portfolio?”

Responding, Cllr Harvey said: “I full share your perspective; it’s true this council has never had a Cabinet member with this role; however I can reconsider, I regard all aspects of rural life as vitally important.”

He told members farming and rural affairs came under the portfolio of the deputy leader [Cllr Paul Miller], adding: “we’re all aware of the changing aspects of rural life at the moment, we do have a rural affairs champion in Cllr Steve Alderman, but I’ve had a conversation with the deputy leader and agreed to review this title to reflect the importance of the role and will happily make an announcement in the next few days.”

Cllr Clements responded: “These words say a lot, it shows this council recognises the importance of the most constant and probably most important business in the county.”