Inheriting the Future

Everyone involved with farmers, farming, rural communities and life therein, will have sighed with relief (as well as exasperation) at the Government’s recent change, as far as the IHT implications on their properties are concerned. The revisions will help many families but won’t rescue everyone – and the biggest ‘boys’ (and ‘girls’ and many institutions) will still have to make the best possible arrangements to protect their assets. But the underlying worry persists that this Government simply does not appreciate the farming scenario and has no understanding of our rural way of life.  They don’t seem to have a grasp of the relevance of the ‘industry’ (not the best word), nor the motivation, continuity and the basic love that farmers and landowners have for their businesses, property and the landscape entrusted to them (by previous generations and history).

But is this lack of understanding between Government and the countryside a sign of the cultural changes that seem to be overwhelming our country – and maybe society as a whole?  Are we witnessing history in the making yet only when we look back with hindsight in some twenty (or even ten) years’, will we see what has emerged from this period of time?  Is that to be the mark of this 21^st century?  A noticeable change in our national customs influenced by increasing urbanisation and the continuing integration of people of different ethnicity and backgrounds settling and, in their own right, becoming established in Britain.  What will be the outcome of this, and – is this all part of ‘progress’? 

What seems sad (or is this just a writer’s ‘age’ thing?!) is that in the  current process of change, much of what we are used to, or even have come to rely on, may be at risk of being lost forever – and the adage of ‘ what you don’t have, you don’t miss’, emerges. Our youngest generation will never know what they no longer have.  We have to believe (and encourage them to believe) that what they do have is an ample replacement and that they will be able to build on it and prosper by it, much as earlier generations have done, by embracing the benefits of change.

However, back to the basic subject: the IHT proposals have just changed again, but they will still have an impact on many. The headlines refer to APR and BPR thresholds. But nowadays, as a result of the encouragement to diversify, many of the uses and activities of rural properties are being seen as ‘non-agricultural’ or ‘non-business’.  We suggest everyone (and it applies to all businesses, not just farming) needs to look at this and understand how the new rules may impact on this part of their estate. So, it will still be worth your while to take a moment and see, as far as financial planning and succession is concerned, whether you do need to ‘get your house in order’.

In that context, it could be said that a positive consequence of these Government proposals has been to bring on serious family discussions about ‘the future’ –  to look  afresh at what the family envisages might happen to their property as the generations grow up, move on or pass away.  Do they want to continue to farm? Do they want to live there? What changes or new initiatives are possible?   Or is the property now preferred as an investment giving some financial return, to back up other careers and skills, yet also affording much personal pleasure and pride – to walk across, play on, diversify, develop and treasure?   Or perhaps it provides a stepping stone for a further generation to set out on their own journey – for a home or a business or any other interest or dream they may have.

So, despite the challenge that has recently loomed of a frightening tax burden, can this moment actually prove to be a positive one, to prepare you and your family for the future? We know the land and many buildings will last a lot longer than any Government and their policies. History is proof of that. Now may be just one of those moments to grasp; then that ‘elusive’ hindsight might show that 2026 was the year to set things up safely and with more confidence for the future than the headlines and political rhetoric currently imply. ‘The future is bright, the future is….?’