Farming

Farmers should prepare for IHT changes

Published

5 years ago

November 19, 2020

FARMERS should review their Inheritance Tax (IHT) and succession plans ahead of the Spring Statement as potentially significant changes are expected, according to rural accountant Old Mill.
There are less than six months before the Spring Statement, and changes to the IHT format – based on recommendations originally outlined by the Office of Tax Simplification (OTS) in July 2019 – are likely. “The recommendations were primarily geared towards streamlining IHT administration but may have the secondary effect of reducing some of the favourable reliefs available to farmers,” explains Catherine Vickery, associate director at Old Mill.
“Current IHT legislation can be very beneficial for farmers, giving confidence that they can pass down agricultural business and property assets to the next generation tax free on death,” she adds. “Unfortunately, the coronavirus pandemic has left the Government with a very large debt, so there’s potential that it will implement any OTS recommendations to increase tax revenue.”
So, with the Spring Statement anticipated for March, what can farmers do to mitigate any potential changes?
“Under the existing rules, agricultural land and property qualify for Agricultural Property Relief (APR) from IHT at up to 100%,” explains Mrs Vickery. Other land and property assets, like diversified enterprises, can qualify for up to 100% Business Property Relief (BPR) as part of an overall farming business which is at least 50% trading. “These reliefs can apply on lifetime transfers as well as on death where the conditions are met.”
Transfers on death currently also qualify for Capital Gains Tax (CGT) free uplift so that gains are effectively washed out. Lifetime transfers of agricultural land, property, and businesses which are at least 80% trading qualify for gift holdover relief, meaning gains can be deferred until a later disposal.
However, a key OTS recommendation is to remove the CGT free uplift on death when IHT relief is also available. This would mean that the next generation would inherit the farm at an historically low base cost, leading to higher CGT on any future sale.

The OTS has also just released its report into CGT simplification which echoes this same recommendation. Proposals to alter the trading test for BPR, aligning it to the 80% CGT trading test could leave farmers ineligible for 100% BPR, which could result in assets having to be sold to pay IHT liabilities.
“The most tax efficient option has often been for farmers to continue to actively farm and hold onto assets until they die,” says Mrs Vickery. “Now, given speculation about potential changes, the best course of action is to get a succession plan in place as soon as possible and start implementing it.
“Plans need to be arranged based on what is right for you, your family and the farm right now, rather than how things might stand at a later date.”
This means establishing who is taking on the assets and if they have the skills needed to drive the business forward. “Pass over this responsibility while you still can and while you can be on hand to guide and support your successor,” advises Mrs Vickery.
It’s also important to review partnership or shareholder agreements, and consider the handing on of other assets. Additionally, farmers should collate any trust and gift deeds, so that paperwork is on hand to be reviewed.
“Though we suspect the new IHT rules won’t be favourable, farmers need to make use of the rules we have now as these are a current certainty,” says Mrs Vickery. “Succession planning is so easy to put off but it’s a vital tool in safeguarding the future of farming businesses.”

Crime

Man pleads guilty in illegal ‘smokies’ food safety case

Published

22 hours ago

March 18, 2026

Tom Sinclair

A MAN from Llandysul has pleaded guilty to food safety offences following an investigation into the illegal trade of so-called “smokies”.

Carmello Gale, aged 71, admitted the offences at Isleworth Crown Court after an investigation by the Food Standards Agency’s National Food Crime Unit.

Gale pleaded guilty to conspiring to place unsafe food on the market, specifically “smokie” meat, in breach of food safety regulations and the Criminal Law Act.

He was granted bail ahead of sentencing, which will take place at a later date.

“Smokies” refers to skin-on sheep meat produced by singeing the fleece off an unskinned carcass, giving it a distinctive colour and smell. The process is illegal in the UK and is often carried out in unapproved premises that may not meet basic hygiene standards.

Neil Castle, Deputy Head of the National Food Crime Unit, said: “Carmello Gale is considered a significant figure in the illegal smokies trade, with the investigation uncovering his involvement in the wide-scale distribution of smokies across the UK.

“This guilty plea reflects the work of everyone involved in this investigation. I would like to thank Ceredigion County Council, Dyfed-Powys Police, Southwark Council, Swansea Council, and the Tarian Regional Organised Crime Unit for their support.

“The NFCU will not stop in its efforts to identify, investigate and bring to justice those who seek to exploit our food system.”

The agency is urging anyone with concerns about food fraud or illegal “smokies” production to report it to their local Trading Standards team or contact the unit confidentially.

Farming

Farmers urged to vaccinate against bluetongue before spring turnout

Published

1 day ago

March 18, 2026

Tom Sinclair

Fears grow over fertility problems as virus spreads across England and Wales

FARMERS are being urged to vaccinate their cattle against bluetongue before spring turnout, as the virus continues to spread and cause serious fertility issues across England and Wales.

The warning comes following a briefing organised by the National Beef Association (NBA) and Ruminant Health and Welfare (RH&W), as part of the Agriculture and Horticulture Development Board (AHDB) campaign, Battle Bluetongue.

UK Chief Veterinary Officer Dr Christine Middlemiss and NBA Chief Executive Neil Shand both stressed the need for urgent action, warning that delaying vaccination could have severe consequences for herds.

Defra has reported 320 confirmed cases of bluetongue since July last year, but industry leaders believe the true figure may be significantly higher due to under-reporting.

Neil Shand said: “From what we are seeing in England, and to a lesser extent in Wales, there are higher levels of abortions and ‘dummy’ calves during the spring calving season.

“In some cases, calves are being born with severe deformities, including partial or absent brain development.

“We are seeing this across much of England, but notably far less in eastern counties where vaccine uptake was higher due to earlier restrictions.

“With the current value of livestock, protecting cattle against bluetongue is a no-brainer – and vaccination is the best way to do that.”

Dr Christine Middlemiss warned that some of the most serious effects of the disease may not yet be visible.

She said: “The reproductive signs of bluetongue may not appear until months after infection, so farmers must think ahead.

“Vaccinate now while cattle are still housed and can be handled safely, rather than waiting to see the impact later.”

Farmers are also being advised to vaccinate breeding animals, including bulls and tups, well in advance, and to carry out semen testing six to eight weeks after vaccination to ensure fertility is not affected ahead of the breeding season.

Industry leaders warned that bluetongue could be significantly under-reported, as symptoms are not always immediately obvious.

Mr Shand added: “The official Defra statistics could represent only a fraction of the true picture. We would encourage farmers to report any suspected cases so we can better understand the spread of the disease.”

Bluetongue is a notifiable disease. Suspected cases must be reported immediately by calling the Defra Rural Services Helpline on 03000 200 301.

In Wales, farmers should call 0300 303 8268, while those in Scotland should contact their local Field Services Office. Failure to report suspected cases is a criminal offence.

Further guidance, including resources and updates on the BTV-3 strain, is available via Ruminant Health and Welfare.

Farming

Plea to remove decades old ‘unviable’ planning conditions from property

Published

6 days ago

March 13, 2026

Bruce Sinclair - Local Democracy Reporter

THE FINAL stage of removing decades old agricultural planning condition ties to a Pembrokeshire property has been given the go-ahead by Pembrokeshire planners.

Back in December, Tim and Cathy Arthur were granted permission for the removal of an agricultural worker-only condition at New Creamson, Creamston Road, near Haverfordwest by members of Pembrokeshire County Council’s planning committee.

An officer report for members said the agricultural condition was imposed when the dwelling was built in 1988/89, with a recent certificate of lawful development granted after it was proven the site had been occupied for more than 10 years on breach of that condition.

An application for a certificate of lawfulness allows an applicant to stay at a development if they can provide proof of occupancy over a prolonged period.

Speaking at that meeting, agent Andrew Vaughan-Harries of Hayston Developments & Planning Ltd told members the original agriculture worker-only condition was a poor decision by planners back nearly four decades ago for a 50-acre farm that “should never have been approved as it shouldn’t have been viable”.

Since that approval, an application by Mr Arthur before the March committee sought removal of a Section 106 legal agreement, entered into back in 1994, tying New Creamson to the agricultural land along with an agricultural worker condition.

A report for members recommending approval added: “The applicant wishes to separate the land from the dwelling as the dwelling can lawfully be occupied not in connection with agriculture,” recommending that S106 agreement be removed.

Speaking at the March meeting, Mr Vaughan-Harries, who said his clients were not farming the land at all, described the latest application as “just tidying up the paperwork”.

“If you release this today it allows the useful farmland to be released to other agricultural uses.”