- "In the last 20 years our business has changed considerably…and as the focus of our business has changed, Bird Luckin have moved with us."
Alex Tanner, George Tanner (Shalford) Ltd - "Bird Luckin has looked after us incredibly well for over 60 years, they are pro-active and innovational - meeting all our needs to help us achieve our aims."
Richard Stubbings, Cliffords Limited - "I can honestly say that Bird Luckin are the best firm of accountants and auditors I have ever dealt with - and I don't say that lightly!"
Colin Webb, Walthamstow Stadium - "It's important for us to know that we will always be able to contact the right people to give us the right advice and support."
Jane Bennett, Bennetts Funeral Directors - "Although we deal mainly with one Partner … we also know that if we need to contact someone else who is a specialist in another area, we can get the advice we need quickly and easily"
Jeremy Ruggles, J.S. Wright & Sons Ltd - "Bird Luckin got us to a stage which would have taken us months - if not years - to reach on our own, and they got us there in a matter of weeks"
Matthew Sullivan, SNC Ltd - "You can be a good accountant, but if you don't have an understanding of the industry it can be very difficult. "There are two or three people we have regular contact with at Bird Luckin who know our business well, and it makes a difference.""
Robert Church, W A Church (Bures) Ltd - "The work which Bird Luckin has done for Boddingtons over the past few months has helped shape our future direction for the better."
John Warner, Chief Executive, Boddingtons Ltd - "Bird Luckin has acted for us since our inception 10 years ago. They have a very 'can do' yet highly professional attitude - we are very appreciative of their support and advice over the years."
Marlon Fox, Outlook Property Ltd
Tax decision may bring IHT benefits for farmers and landowners
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A recent tribunal decision on the way tax relief was applied to an estate following the death of its owner could have significant benefits for farmers and landowners, as it potentially changes the current approach to inheritance tax (IHT) planning. The Upper Tax Tribunal dismissed an appeal by HMRC in the Balfour case, where Lord Balfour held his interest in the estate – which included a mixture of trading and investment activities such as active and let farms, let cottages, let commercial units and various woodlands – in a partnership. Lord Balfour’s executors claimed the estate was managed as one composite business where he presided over all main decisions, and therefore claimed Business Property Relief (BPR) against his partnership interest. PR can apply to 100% of the value of any assets which qualify as relevant business property – providing those assets are used in a business activity which doesn’t consist “wholly or mainly of making or holding investments”. HMRC rejected the executors’ argument, mainly on the basis that the rental properties on the estate represented investments rather than a genuine business activity. “The decision suggests that the fact a business includes investment activities – which were not insignificant in the Balfour case – doesn’t necessarily mean that BPR will not be available for the whole of a mixed use estate,” said Peter. “Clearly it’s important to look at each case in context and individually, and short-term measures such as simply changing the way that accounts are drawn up are unlikely to impact on the availability of BPR. |
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“However, we now know which factors the Tribunal considered when making it’s judgement, and we can consider these specifically when it comes to IHT planning. And while farmers and landowners who are young and in good health may not focus much attention on BPR and IHT planning, it’s clear that changes made now and for the longer term could strengthen a future argument that an estate is being run as one business.”
Factors arising from the case which need to be considered include:
• maintaining a simple operating and ownership structure, with (wherever possible) employees and advisers spreading their time between trading and investment activities.
• increasing the level of trading activities against investment activities.
• maintaining a composite management structure with a single business plan, management accounts and meetings.
• maintain accounting and other records to support a claim for BPR in the event of an enquiry from HMRC.
“While this is obviously an important case with possible advantages for farmers and landowners, no action should be taken without seeking professional advice based on the specifics of each individual circumstances,” added Peter.
Peter Warren
t: 01245 254250
e: peterwarren@bird-luckin.co.uk