Farms and Agricultural Property Relief
A percentage of farming families may be faced with large Inheritance Tax bills from a withdrawal of Agricultural Property Relief in some instances.
If the principal farmer dies but limited the amount of work they did – or even stopped working altogether, then their APR, which normally is granted for farmhouses, is likely to be challenged after their death.
This of course means that, in order to qualify for APR, a farmer must literally work the same number of hours until he has always done, until the moment of his death.
One way of avoiding this substantial pressure however, is to plan well in advance and transfer ownership of the farm to the children before the death takes place, which will then validate the case for APR and mean that Capital Gains Tax will not fall due unless the farm is sold to an external party.